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Proceedings of a Symposium organized by fhe Sociefy of Hong Kong Scholars Hong Kong, January 27, 1992

4海~ Publíshed by the Society of Hong Kong Scholars with the

sponsorshÍJρ of

Hong Kong

Foundαtion


Editors C. F. N露,

L.M.L. Leung , N. F.Y. Tam , Y. S. Wong , K.S.L訓, M.F. Yuen

K.T. Chan , J. Chen , M. Fang , M.H. Mok, S.K. Tso

4海@ Published by the Society of Hong Kong Scholars with the sponsorship of Hong Kong Foundation 仰仰仰抑仰仰仰僻備耕仰紛紛仰仰仰

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Society of Hong Kong Scholars 1992

All rights reserved. No part 01 this publication may be reproduced , stored in a retrieval system , or transmítted in any lorm or by any means, electronic , mechanical, photocopying , recording , or otherwise , without the prior permíssion 01 the Copyright owner. First published 1992

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科技 i私存落在人 研討會議紀錄

香講學者協會主持 一九九五年一趕廿.-è旨,今萃

編輯

吳清輝無搗毀神風俄費玉山柳啟瑞袁銘輝

陳闢練練介中方明其氏雄會紹佛

4擊@ 香講學渚協會出版

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SY其實POSIUl\宣 ORGANIZING

COMMITTEE CHAIRMAN:

Dr. C. F. NG , HKBC

VICE-C討AIRMAN:

Prof. J.C. CHEN, HKUST

SECRETARY:

Dr. Nora F.Y.

TREASURER:

Dr. Louis M. LEUNG , HKBC

PROGRAM ARRANGEMENT:

PUBLICITY:

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TA於f,

CPHK

YUEN , HKUST Dr. K. T. CHAt呵, HKP Dr. K.S. LAU, HKP Dr.卸f.F.

Dr. M. FANG, HKUST

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PARTICIPANTS Mr. ARNOLD , Mike Mr.A心, S泌nley K. Mr.l至 EUlCHOU , Fr街lk E汁。f. CHANG ,肘.K.

InùusLry Depar經llenl , Hon惡 Ko詰g Govenunent Provisional HK 11ldus射“ 1‘ech泌ology Centre Co. Ltd. Scientific Attache, French Embassy Co. Hong Kong University of Science & Te氾hnology

Ms. CHENG , Vivian

Dr. CHEUNG , Nai Ho Ms. CHENG , Ngai Lung Ms. CHONG , Siak Ching Mr. CHONG , Stephen K.C.

Hong Kong Baptist College 鵬 Recording Secretary Hong Kong Baptist College Git臨的 Engineering Co Ltd. Technology Parks Pte. Ltd. Member of Legislative Counc紋, HongKong Foundatio豆

法。f.

CUE, Nelson

Dr. DALT。斜, I 誰nG. Pro f. FAN , Yiu Kwan Dr. FANG , Ming Mr. FlSHER , Stephen Dr. FONG , Wang Fun Prof. HEARN , E.J. Miss HO, Philomen晶 Mr. HO , Wai Lun Mr. HU , Yebi Dr. JAO, Y.C. Mr.KELLY, L.R晶Y

Dr. LAl, Suk Yin Mr. LAM , Kin Wai Mr. LAM , Kit Dr. LAM, Peter Hing Yat

Dr. LAU , Kai Shui Dr. LEUNG , Hei Wun Dr. LEUNG , L. M.

Hong Kong University of Sci惡nce& Technology Heriot-Watt University 民的earch Park Hong Kong Baptist Colle當6 Hong Kong University of Science & Technology KPMG Peat Marwick Management Consultants Ltd. City Polytechnic of Hong Kong Hong Kong Polytechnic illdusLry Departmer哎, Hon怠 Kong Government Jo加son Electric 111齡組織 Manufactory Ltd. Hong Kong Foundation University of Hong Kong Arth ur D. Little Asia Pacific illc. Hong Kong Baptist College Hong Kong Foundation Hong Kong Polytechnic Hong Kong Universìty of Science & Technology Hong Kong Polytechnic Hong Kong Baptist College Hong Kong Baptist College

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Ho益皂 Kon皂 Polytechnìc

Prof. LEUNG. Tin Puì Dr. LEUNG , Wing Nang Mr. LI. Maximus

Hong IÇ.ong Baptist College lndus旬Depac虹nent, Hong Kong Govemment

Mi ss LI, Sìu Hoì Dr. LlANG , Winston W.

Hong Kong Fowldation Provisional HK lndustrial Techuology Centre Co. Ltd. Vari虹onix Ltd. Chinese Unìversity of Hong Ko絲露 Lee位ld Li Attorneys at Law Chinese Unìver草ity ofHon嘉 Kong Hong Kong Foundation HongKon皂 B 益:ptist College Texas A&M Unìversity Centre of Urban Planning & E紛vir. Management, HKU lndustry Department, Hong Kong Govemment Hong Kong Baptist College - Chairm胡 Hong Kong Unìversity of Science & Technology A此hur D. Little As ia Pacific , lnc. Technology Packs Pte. Ltd. Gilmore Hauk揖y Ki rke Ltd. Unìversity of Hong Kong

Dr. LlAO , York Prof. LIU , Han Qin Dr. LIU , Lawre級ce S.

Dr. LIU , Pak Wai Mr. MA , Tit

Win學

Dr. MOK, Man Hu泊在 Dr. MONEY, Mark L. Ms. NG.MeeK紋到 Mr. NG. Rafael Dr. NG , C.F. Dr. NI , I-Hsun Dr. REINFELD , WHliam Ms. SIM , Christina Li Mei SIMPSON , J滋滋ie A.

Dr. SO, Kwok Fai Dr. SU Et啥, K.F. Ms. SUN.B草草ndaC. Dr. TAM , Nor轟 F.Y. Dr. TANG, T.M. Mr. TANG , Thomas Dr. TIN , K.C. Mr. TSANG , Lai Keung Dr. TSO , S.K. 抖。f. TSOU , Benjacnìn K. Dr. VR1 JMOED , Lilia位 Pìng Mr. WANG , Yun Shi Mr. WANG. Zhao Yong Dr. WEIL丸, Fr昭雪。ìs

Hon皂 Kon車 BaptistCoU姆拉

Lee

Office of 11ldustri轟I&B借給e必Development, CUHK City Polytechnìc of Hong Ko濕.g Supreme 1紛strumen的 Ltd. Unìversal C似le Teclmology Ltd. City Polytechnìc of Hong Kong VTC Unìversity of Hong Kong City Polyteclmic of Hong Kong City Polytecluùc of Hong Kong Shenzhen

Science 組d lndus智y

ParkCorp.

HongKo紋.gl沁.pûst College lntergov思r就mental

COImnittee of Sophia-

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\Mr. WONG. Thomas Mr. WONG , WiJfred Dr. WONG , Y.S.

Hon草 Ko時 Fo間為tio鈺

Industry

Depar紛紛鈍丸 Hon事 Kong

HongKo絲露 University

Govemment of Scíence &

Tec怡。logy

Mr. WONG , Chris Ho Chlng Prof. WONG , Jeffrey Tze Fei Prof. WONG , Joshua Sook Le ung Dr. WONG , Raymond Sze Chung Mr. WU, Robert

YEUNG , Mei Ching Prof. YOUNG. Kenneth Dr. YUEN , Ming Fai

11ld ustrial

Centr缸, HKP

Hong Kong University of Scíence & Technology Hong Kong Polytechnic Hong Kong University of Scíenc暐& Technology Office of Industrial & Business Development, CUHK Hong Kong Productivity Council Chinese Univer富ity of Hong Kong Hong Kong Univer草ity of Science & Tec胎。logy

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CONTENTS FOREWORD Editors, Society 0/ HOllg Kì:Jng Scholars X WELCO是lING

SPEECH AND lNTRODUCTION 1 0/ Hong KOllg Scllolars

Dr.C.F. 均 Society

OPENING S J> EECH 3 Mr. StepheJl Cheong. HOlIg Kong FOI的datioll SECTION

1

Infrastructural Support for Technology Upgrading in Hong Kong: ls there a Case for 揖 Science Park? 5 Mr.

Wi{介ed YJ學'.

WONG (Hong Kong)

The Benefits of a Science Park全忘5S個tial Elements for S給ccess 13 Dr. Mark L. MONEY (Sal! Lake τbe Developme肘, Marke如草制dM刷品gem啦。f Technology τbe

Ci秒1)

Parks:

Singapore Science Párk Ex perience 24 Ms. Siak-chìng CHONG (Singapore)

Th e First Decade of Taiwan's Science Park …A Corporation

Practitioner's Perspective 36 Dr. Lawrence S. LIU

(Ta每'Jei)

Soplùa Antipoli皂, Diagnostic of a Suci:::ess Story 44 Mr. FrallÇois WEllL 伊aris)

Comrnercialization of Technology in SSIP 51 Mr.

Yun-shi 泌'ANG

(Shem:hen)

Technology Transfer, a Key Element in Science Park 69 。r. la /l G. Dalton (Edinburgh) Science Park …An lndustríalis t' s Perspective 19 Mr. Thomas TANG (Hollg Kong)

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SEC l'lON

II

R OUND TABLE DlSCUSSJO.'!:f.. 86 Govemment . lndustry . Academic Relationslûp M倪ferator:

Dr. York UAO. Society 01 Hong Kong Scholars and Fin揖ncin皂-

Varitr.仰 ic

Ltd.

Seed Funding and Ventures Capit挂i

Moderator: Prof Yiu-k吾叩1l FAN. Society 01 HOllg Kong Scholars and HO lI g KOllg Baptist College lnfra泌ructur宅﹒ Manpower,

Site Planning and Envìronmental

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M街íerator:

Dr. Siu-kit TSO. Society 01 Hong Kong Scholars and Ulliversity 01 HongKong CLO主虹丘

112

Prof Kenneth YOUNG , Society 01 HOllg Kong Scholars and The Clùllese Ulliversity 01 HOl/g KOllg

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FOREWORD Six years a紗,

tt叫ociety ofHong Kong Scholars held a Symposium on

“The Role ofHigh Technology in Hong Kong's Industrial Developmen t" in which the very first paper on Science Park in Hong Kong was first presented. Over the intervening six years , we have seen a steady build up of a wide gap between Hong Kong and the other three little dragons Taiwan , South Korea, Singapore , in terms oftechnology level of industry.

If the proper qu的tion to ask six years ago was 啥hould we raise the technology level of our industry?" , then the question today would perhaps sadly be “Do we still want an industry in Hong Kong or 衍。,t1" Alas , judging by the enthusiastic attendance and the very lively Round Table Discussion s患ssion in the Symposium, it seemed that many busy people , from both public and govemment sectors, genuinely wished to see Hong Kong industry survive and cared enòugh to seriously explore whether there is a case for a Science Park in Hong Kong at this point oftime. Although the Symposium was not meant to be a lobbying effort or a feasibility study for setting upaScience Parkin Hong Kon怠, it nevertheless succeeded in sharpeni時 our fl∞us on the key aspects of this important issue. Now that the Government has moved one step further by commissioning a consultancy 的兔絲 bility study , this volume ofproceedin醉, as a valuable source oflearned opinions , we hope , will contribute towards the decision making and po的bly future planning proc的ses in building up a Science Park in Hong Kong in one way or 扭other.

Editors June , 1992

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WELCOMING REMARKS AND INTRODUCTION C.F.Ng

Society 01 Hong Kong Scholars Hong Kong

Mr.Cheon怠,

Ladies and Gentlemen,

It is a great honour and priv i1ege for the Society of Hong Kong Scholars to host this symposium on "Investment for the Future: Science Park in Hong Kong ". On behalf of the Socie吟, 1 would like to extend to all participanù哩, ìn particular, our distinguished speakers from abroad who have come a long way to share with us their precious experiences , our hearty welcome and best wishes.

Almost exactly six years ago, our Society organized a symposium on 抖The Role of High Technology in Hong Kong's Industrial Development" in which amongst many import位lt topics, the very 給st paper on science park in Hong Kong was presented. Ever since , the ìdea of science park is echoed and the term appears rather frequently in press every now and then. Today , when 的 look back over the路 six yeæ苦, 1 must say that 1 have mixed feeling. On one hand, we are happy to s能 some of the topics

1


dìscussed ìn that symposìum have b鞠n actively pursued; on the other hand , the pace of our i祕ustrial transformation process towards a knowledge intensive phase has been disappointingly slow and the 的iencepark issue h部 made litt1e headway. Fo投una紀妙,

things seem to be happening. With the ever incr侃到ng awareness of industrialists and government officials about the urgency of upgrading and diversifying our indu組y , the emergence of an active movement tow紅色 closer colIabora泣。nbe棚。en the academia and the indu總y, the commitment of the public 姆總in more high level science and 能做lology personnels 組d 祕鴿, the less rigid 仰sition adopted by the Hong Kong Government recenüy on the so-call叫 positive non-intervention economic phílosophy as witnessed by some positive measur也 suchas the 認tablishment of m轟.tching re歸宿街心nd for ind\粉紅ial R & D and the 臨minentcommissioning of a feasibility study for a Science Park for Hong Kong , we feel it is now 訟。pporωne 血le 紛加vea forumωallow the concernedco結lmunitytoexch紹ge views amongstourselves 組dleamfrom th個ewho 街游 cun海nt1yopera也19 successful 叩開臼 P羽icselsewhere- their jo持述,如d 1 was to話,研制 p的nful experience. Bytheer戚。fthed旬, although we probably wíll not s研 thecomple誼。nof the feasibility study of the Science park for Hong Kong, yet we 紛ehopeful that the symposiu總 W由加lp us undeI苦錢nd in more concrete terms , the different models and the v研制so戶泊位onalas防cts of a Science Park and hence con紅ibute towards the acceleration of our deci到∞ pr'∞ess on the estab益shment of a Science Park for Hong Kong. Befc波'eclosing, 1鉗制做e this opportunity to th磁鐵 our speakersffOOl Hong

Kong Governme肘, Hong Kong industry and Science Parks worldwide, and last, defmitely NOT the least, Hong Kong Foundation without whose generous fin部cial support this 呵呵制ium cannot have mat詞組ized. Ladies and Gent1emen, withαlt further ado, may 1 now calI upon the Honorable Mr. Stephen Cheong to deliver his openíng s戶~ch for.the

Symposium.

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OPENING SPEECH Stephen Cheong

Hong Kong Foundation Hong Kong

Dr. Ng, Ladies and Gentlemen, 1 would like ωthank the organizing committee for inviting me to speak at the 0仰lÌ時 of this significant conference and before such a distinguished gathering. The question 有rohether we should have a science park in Hong Kong has 加en repeatedly raised since more than

10 years ago. Many businessmen of our economic 總部ture and have U11鑫ed for the upgrading of m盈nufacturing industries from labourintensive to technology-intensive production. h轟鳴 fores鶴nthecomi略 transformation

Acaden泊的, such as the Society of Hong Kong Scholars , have 紛紛 seen the impoltance of science and technology 車s an instrument of the further development of our economy. Indeed , the Society of Hong Kong Scholars organized ín 1986 a symposium on the role of high technology in Hong Kong' s development, in which the need for the establishment of a science park was discussed.

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Since then. increasing laboUf costs and the shifting of the major part of our labour intensive manufacturing operations into Southern China and other areas in the region has made it a 總。nger case for the development of higher value-added and technology-intensive indu盡管ies in Hong Kong. Mc路t

experts would agree that one of the main reasons for crea位ng a park is to provide a focal point fi仿 the location of high隔tech 缸tivities. re闊前ch 如d development faciliti郎. which will promote 由e in億伊tion of science and industry. 前已e眩目e

As yo也 willb鋪rfrom 提f. Wilfred Wong of the Industry Department. the

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Government will s∞n conunission a consultancy study to examine wbether there is a case for establishing 揖 science park in Hong kωIg. 1 am certain 曲is conference wil1 provide the necessary impetus 缸糊紅ds such a developmen t.

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INFRASTRUCTURAL SUPPORT FOR TECHNOLOGY UPGRADING IN HONG IS TI益RE A CASE FOR A SC臨NCE PARK? mmn

ABSTRACT Increasingly more and more labour品tensive manufacturing operations are being moved out of Hong Kong to other countries in this region , nota制y China. In order to capi taI ise on this restructuring of our manufacturing industry , we need to build up our technologic a1 capability 削d tum Hong Kong into a centre for high value-added manufacturing and regional supportacti vities. Under its policy of minimum intervention but active 錯pport, the Government has a significant role to playin creating a physica1 environment conducive to facili紛紛鈴g technologic a1 innovation , particularly in manufacturing. The provisio級 of necessary in般的制ctural support is a vital element ìn this pl'ocess. Inspired by incubator establishments that have been so successful in the developed countri鈍, the Govemment has a1ready given 為 support to the develop~H/"協級勞仿仿仿仿匆匆仿仿仿勿仿仿侈侈侈侈仍仿切勿仿勿仿仿仿仿紛紛。矽侈侈侈勞幼仿仿仿仰勿侈侈你仍斂匆匆侈~H////h

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ment of a technology ce終tre in Hong Kong. Is science park a logical addiûon to our technology infi紹$絃uctu終? The Industry Department has proposed tocommission aconsul伽cy 鄉dy to examine whether there is a case for 的tablishing a science park i位 HongKon多 The result of this study will be co的ider吋 by the Industry and Technology Development Council (ITDC). If it is accepted that a case exists for a science park in the near futu銬, thelndu總yD叩artment intends to commission a second study to prep品re a plan for its developmen t. The presentaûon will cover the Govemme剔's industrial policy , the eXÎsûng technology infrastructure, and the basic qu闊的。ns which the first consultancy study needs to address.

INTRODUCTION It gives me great pleasure to parûcipate in this conference. 1 am very much impressed by the many endeavours of the Society of Hong Kong Scholars in promoûng technological advancement in Hong Kong. The conference today is most timely as we are considering an 姐lportant investment for our future - a science park. In my presentaûon 1 will flfst explain in fairly broad terms our indus肘alpolicy 個d 出e thinking behind it. After that, 1 shall talk about the eXÌsûng 蛤chnological infrastructure in Hong Kon怒, and a consultancy 甜ldy toexamine the case for establishing a science park.

GOVERNMENT'S INDUSTRIAL POLICY Hong Kong has a free market economy. To facilitate the development of our manufacturing sector, the Govemment has done three important things but interesûngly they are notnormally considered to be “ industrial" policies at all. Fi削旬, we have alw野草缸ied to manage our economy prudently , so that business c訟 be confident in invesûng in our future. Secondly. we have recognised the need of invesûn鑫 inhum祕 capitaland spent a substanûal proporûon of resou化的 on education and manpower trainìng for industry. Third旬, we have ensured adequate inves佼佼念紋ti紋 physical infras街Jcture. 何晶晶且 6

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These policy initiatives in the areas of macroeconomic stability , education and infrastructure are supportive in nature. We have all along avoided an interventionist indus甘ial policy: for instance a policy of subsidies for fashionable ind\泌的es and safety-nets for poorly-perfonning companies. While we believe thatcertain functions are better handled by government than the private sector, we recognize that the actual job of doing business should be left to businessmen because they are better placed to 倒峙的 the market situation and other related factors. Characterising 由is approach as minimum intervention but active support seerns to be most appropriate.

ROLE OF THE

GOVE~個NT

Hong Kong' s manufacturing sector is in 由e process of restructuring to concen酋ate more on higher value-added products , and developingas a cen酋e s\lpporting regional manufacturing activities. We are fully aware of these changes and of the need for Iß environment which would be conducive to such 酋ansfonna位on. In this regard , the Governmen t' s role spans 吋ucation and traini嗯, research , common support services and technology transfer. The Government has also a very unique role to play in building up the necessary physical infrastructure.

EXISTING TECHNOLOGICAL

INFRASTRUCTURE First and foremost , we need to keep abreast of technological changes and iden世fy the requirements for upgrading our technological infr倒個cture. For this purpose , the Government has previously sought the advice of industrial and academic experts on the fonner Indus昀 Development B個叫(即B) , the Committee on Science and Technology (CST) and their specia1ist committees. As from January this year, a new Indus甘yand Technology Development Council (ITDC) has been set up to replace the IDB and the CST. With its expanded tenns of reference and a more focussed approach , this new Council will be beuer placed to advise 由e Government on how Hong Kong's industry should respond to technological developments around the world.

7

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The ITDC will also help the Government to administer an Applied Research & Development (R&D) Scheme. Under the scheme , a sum of $2α) million is to be provided to give financial support to companies on a matching basis for worthwhile applied R&D proj恥的.人t the same time. 也e Government is seeking to improve the R&D capabilities of tertiary academic institutions , not only as a way of attracting and retaining high calibre staff, but also to develop a strong cadre of researchers and technologists who can eventually undertake applied I之&D cornmissioned by companies in the private sector. According峙, Government funding for research at the tertiary institutions has been increased from $120 million in the 1988月 1 triennium to about 斜∞ million for 1 仰1/94. This is 0拉伯pofthe$2∞ million which wil1 be provided through the Applied R&DScheme. In addition to R&D the Government is aw滋-e that technologìcal development can only occur if the workforce is 始終lf adequately prep議red to absorb new technologies. Each y鉛r the Government spends consider編 able 給您s to provide manpower traini諒.g throu鑫h the tertiary acadernic institutions. Vocational Training Council (VTC) and other industrial support organisations. With the expansion of the gr叫做毛e progr紋磁帥, the number of university students enrolled in full time study of en軾的er­ ing and technology subjects is expected 如 rise from just over 10.000 in 1990 切 about 誨,故沁 by the turn of this century. At craft and techni cÎ an levels the VTC provides a comprehensive range of courses as well as extension training in a number of scìentific and technologìcal disciplines. But the need for m祖power training does not stop on graduation day. In response to the growing demand for trained manpower and rapíd technological changes , the Government is establishing a New Technology Training Scheme. Under this scheme. financìal assistance will be provided to employers to enable their mid-career managers and technologists to undertake training in new technologies considered of importance to Hong Kong's industrial and economic developmen t. Government also provides further supportωmanufacturers through a number of less direct methods. At present a variety of indu日出al support organisations exist in the publíc sector to assist manufacturers in technology upgrading. Some of them also play a key role in technology “晶晶晶函而 8

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acquisition and di認emination. The most notable support agency is the 鈍。ng Kong Productivity Council (HKPC) which assists manufacturers by providing demonstration , training , advice , and specially-tailored solutions to individual problems. In addition, the Government' s Standards and Calibration Laboratory and the Hong Kong Laboratory Accreditation Scheme provide essential infrastructural support to assure product quality 組d s伽dards. The Hong Kong Indus剖al Es側的 Corporation provides land to those manufacturers whose operations cannot be conducted efficiently in conventional t1 atted factory accommodatio鈍,組d introduce products or pr∞esses with a higher technology content than is prevalent in Hong Kong. Other support organisations include the Hong Kong Design Innovation Company , the Clothing Technology Demons紋路on Cen帥, the Hong Kong Plastics Technology Centre and the tertiary academic institutions. These support services and facil崗的 will be further enh直nced when the Hon忍 Kong lndl泌的al Technology Cen臨 becomes fully ope路tional in early 1994. The new technology centre will comprise an ir泌的ator for innovative technologîes , a smaII frnns facility , a product design and development centre , and a technology 佐ansfer service. Hong Kong has benefited considerably from the import of technology in the pa悅, and is bound to continue relyin鑫 on the adaptation of overseas technology in the future. Given the diversity ofHong Kong's economy and its limited resources , promotion of inward investrnent is crucial to enrich Hong Kong' s industrial base with new or improved products and proc闊的. Gove邱鐘珍ntimposesnores組ction on the import of technology , 。r disincenti ves such as minimum local equity participation requirements. Thus ,抽泣的認men c部 source their technology from wherever they choose. Whíle this process is largely dependent on private sector requirements , the Government plays its p紋t by funding support organisa訟。肘, such as the HKPC , to acquire and disseminate new technologies , by seeking to attract inward inv峙的rs who can bring in useful technologies , and by publìcisìng technology licensing opportunities費

切普車

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9_函函晶晶


CONSULTANCY STUDY ON SCIENCE PARK Notwithstanding the many and varied support facilities and services being provided to the indus位y , it is essential for Hong Kong to h誰ve the right physical ìnfrastructure in pl鑫.ce to encourage 能chnological innovation. Based on experience elsewhere , a science park could be a logical addition to the technological infras住ucture of Hon怠 Kong. The new Hong Kong IndustrialTechnology Centre under development is a1ready animpo民組t step in 總部ulating technological innovation , but the scope of the centre is limited. As the main function of the technology centre is to provide accommodation for small “ start-up" companies , the m轟~ority offutur軍紡織泌的 of the centre will occupy units of only 20 to 100 square metres in area. When tenants of the technologycentre grow and their businesses expand , some will no doubt want to go into a factory environment to manufacture products they have developed. Those who are still research or service orientated 給各 computer software designers , laboratory tes的時 facilities , etc.) will also want to move into lar忍er accommo曲的on. A science park , if develo闕, could provide the extra space they n研d. Moreover, a science park could provide suitable accommodation for existing manufacturers who want to substantially develop their R&D capabi 1ity. Additional旬. the science p轟rk could offer a limited number of sites to large “anchor" tenants. In several science parks , a key role has been played by a single well-known high 毛echnology firm. Such firms add not only prestige to the park , which attracts other companies , but also provide opportunities for contract R&D work by other smaller tenants of the park. Indeed , several multinationals encou時ge their own employees to start up 路ch suppo此ing companies. Multinationals need a large bureaucracy to operate and this at 紛紛的 undesirably stifles innovation. But the development of a science park will invol ve substantial capital and recurrent expenditure. It would thus not be wìse of govemment to take a final decision on the development of a science park without some assurance that the park would be commercially viable and would brin怠 significant economic benefits to Hong Kong. In view of the relative jliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

10

切仰仿糊糊仰仰仰師級的。紛紛仰幼僻份份仰仿仰W/~仰仰餅紛紛仰佈仰偏偏翩翩學學


緩緩物物務務務級餐露

sc削'City of land in Hong Kong and the long lead time 佩 about 5 years required to develop a science park , we need to move quickly if the science park 泌的抖ay an active role in the current process of technological chan怠。. The Industry Depar如lent intends to commission consultants as $∞n 浴"給ible to undertake a study to ex滋IÙne the feasibility of 鴨綠bHshing a science park in Hong Kong.

The study will be divided into two sep訂這te parts. Part one of the study will exarnine thecase fordeveloping a science park in Hong Kong. It will require the consultants to undertake

an in-depth analysis of the present and likely future technological infras凶cture in Hong Kong and the Asian region ,如d 自己 expe峙 的ce of developing science parks elsewhere; acomprehensive market survey conducted both locally and over紡泌 的 identify the demand for a science park in Hong Kong and the services that future tenants might require; and an overall economic/technological assessment of the benefits that might be gained by Hong Kong through the developmentof a science park. As a result of this work, the consultants will be required to recommend clearly whether a science park should or should not be developed and , if 紹, define what this 酷地ht mean in the context of Hong Kong參 For the purpose of part one of the consultancy study , the Finance Committee of the Legislative Council has just approved a sum of $4 .5 million to cover the cos紙 The study is expected to commence soon and to take about 6 months to complete. During the course of the study the consultants will be requÌI海d to present their findings to the various indus說al and trade org轟nizations and tertiary academic institutions i錄 order to seek and incorporate their comments before presentation of their 釘nal report to the 叮DC. If the ITDC considers that the need for a science park has been clearly demonstrated by the consultants' findings , funds will be sought from the Fìnance Committee to undertake part two of the study. Part two of the study will require the consultants to exarnine where and how the science park might be estabHshed , the financial and economic

豆豆


implications and the degree to which both the tertiary academic institutions and 血e private sector might be involved.

CONCLUSION 1 have 扭曲is short presentation 虹ied to ou t1ine how the Government supports technological development in Hong Kong and its intention to examine the case for a science park. Y ou may be assured 出at the Hong Kong Government is committed to creating a favourable environment for manufacturers to invest and upgrade their operations in order that we will move into the 21st century with continued vigo叮. 1 look forward with considerable interest to hearing what fellow speakers and seminar participants have to say about the case for developing a science park in Hong Kong.

12

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BENEFITS OF A SCIENCE PARK: ESSENTIAL ELEMENTS FOR SUCCESS 說ark L. Money Charter AURRP President; 仰扮編 Vi,衍 臼 C 'eC 品 'ha1缸eU伽 昕 0 rj 戶 or Re 你 se 紹 ar, 陀 'ChP 拘 αr 成 k Corporate Relations at the Tex都 A & M University ex撞Executive Director for the Research Park ωld lndustrial Research and Service at the University of Utah Salt Lake Ciη

INTRODUCTION It is an honor to be invi飽d 給 participate in this conference to discuss the topic “ Science Park in Hong Kong: Inves紅nent for the Future'\During my remarks 1 will prese紛t a brief review of the Science/Research Park industry andcite experiences of developìng science parks at the University ofUtah and TexasA&M University over the past 22 years. 1will discuss the benefits of a science park 紛 the community , industry and the university , review factors considered important by companies locating in science parks and then outline the elements which 1 believe are essential 粉 the success of such a project. 1 will concIude with some words of caution for those who attempt to develop a science park. 'V///,P'A掰翩翩如歸仰卿卿僻仰仰仰切如何吾紛紛僻仿紛紛仿仰仰如掰掰懈勞仰

13 晶晶晶晶兩


CUR踐ENT

STATUS OF

SC亞NCE

PARKS

My research into the Science Park phenomenon in 1970, conducted for a doctoral disse舟山路, iden討fied only 22 such projects in the United States. There are now 145 Research/Scien的 Parks in v訂ious stages of development or planning in No民hAmerica. 官司ere are 189 more in other countries throughout the world. The Association of University Related Research Parks has 305 members representing organizations in 21 countries interested in Science Parks. Not 副 science park projects are 仰的創.

Encouraged primarily by the of the Stanford Research Park in California , a number of university-affiliated research parks were started in the 1960' s. A report by the General Accountin怠 Office of the U.S. Governrnent noted that a study prepared by Ohio State University in 19駒, 27 university-rela紛d science parks had 悅enstar終d since 1951 , the year the Stanford Park was opened. The report no鉛d thatofthe 的, 6 had c1early succe叫ed, 16 had failed and 5 were “ in between". (IJ This indic直.tes that the failure rates for 自eseparksare quite high. It would 悅 myes也nate that approx說1ately the 錯meratio 克rvould hold for those star蛤d since 1980. Some never progress p制tthe 鑫nnouncement stage; others announce and secure the land but are unable to attract sufficient interes t. As is generally true with most real estate ventures , those that succeed are widely publicized and those which fail aI有~ quietly ignored. suω恥s

SIGNlFICANT CHANGES TO

NOT配

A review of developments in the indus信y indicates there are substantive [would suggest that the more important changes which will continue to have an ìrnpact on all the research parks 敘'e as follows:

changesoccuηing in the research park phenomenon.

(1)

U.S. General Accounting Offic章, "The Federal Role 泊 Fostering University-Industry C∞peration" , (GAO/PAD 83-泣, May 站, 1983), p. 10.

14

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緩緩侈務務修務務務

1.

MORERESE在 RCHPARκs

5至街d勿在 week

goes by but what we do not read in the national publications of another universi紗, community , state , or indus甘ial development agency announcing a new “ high technology" research park. U sually this will be accompanied by a quote from some official 仙似 this new project will be the new “Silicon Valley" and will be the econornic salvation of the area. In this world of uncertainty , one thing is certain. There are not 側的gh “high-tech" companies s治組時, expanding or 1悵。cating to make all these new parks successful.

2.

MORE COMPETITION It is evident from the number of new developments which have been competition for technology-related and scienceoriented companies will be íncreasingly severe. In this era of more intense competition , those parks with momentum , a trackrecord , and the publicity generated by attracting companies to them obviously have an advantage.

sωrted that 由e

3.

MORERESOURCESREOUIRED Unlike some of the earlier develop懿ents which could be started with modest expenditures, those now being s給rted are comrnitting substantial 紛紛urces at the beginning of the pr吋ect to develop a site which can be a敵active and be a marketin忍 and promotional tool in itself. Some ex紐lples:

A. The Arizona State Uníversity Research Park spent $15 rnillion in placing the necessary roads. utilities. and landscaping on a 323耐re site in Tempe , Arizona. B. The Forrestal Center in Princeton. New Jersey , comrnitted $27 rnillíon to land acquisition and site improvements for thís 1600acre development s訟rted in 1975.

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15


緩緩移緩緩緩務傷多參

C.

The Chicagó Technology Park , ajoint venture ofthe University of Illinois and the Rush Presbyterian-S t. Lukes Medical Center, is being developed on a 56幽acre site. Over $11 million has been cornmitted for infrastructure and an incubator-type laboratory building now under construction.

D. Texas A&M U niversity cornmitted over $12 million to develop the infras紋ucture 發nd build a science building on the 434-acre Rese紋'Ch Park i紋 College Station, γexa皂, The signific紹t factor 給 be noted here is the sizable cornmitrnent of resources without the guarantee of a retum on investrnent in 部 extremely competitive environrnent.

EXP配RIENCE AT THE UNIVERSITY OF UTAH AND TEXAS A&M UNIVERSITY

It is a challenging and rewarding experience to be involved in the development of a science park. It has been my good fortune to participate in the development of the U niversity of Utah Research Park beginning in 1970 and later in the Texas A&M University Research Park from 19的 through 199 1. Situa認d on 320 acres of land in Salt Lake City , the University of Utah Research Park h轟s developed 25 buildings with 44 private compar泌的, 22 university-related functions with abo於是,500 employees. This h那 had a dramatic , positive economic i懿pact on the economy of that area. 才能 Texas A&M Research Park now accommodates 5 buildings with 12 research oriented companies and approximately 350 employ!的缸片rhis has had a positive economic impact in a rural area of Texas which is striving to diversify Îts economic base by attracting science刪 basedcom­ pames.

兩而而函函而 16


務務移傷務傷多多多

BENEFITS OF SCIENCE PARKS There are advantages to all parties from this cooperative effort The community or governrilental entity benefits from the establishment of a science park primarily fromeconomic developmentfactors. Such a park enhances the economic base of the community through the development of jobs. It also enhances the image of the community as a place which has a healthy diversified economy. There are few adverse environmental factors in attr在.cting companies which do not contribute to air or noise pollution. The existen他 of research related companies also develop “m益gnet" companies through the spi心。ff phenomenon as well as additional companies which provide support services. An exarnple of this would be the numerous small companies in No此hem Califomia which supply parts and 將rvices to the larger companies in the Stanford R路。arch Park. The companies which locate in these parks beneflt from 在n attractive site in a controlled environment near the university. Studentsωld graduates are available for employmen t. In addition , the firms may use s抖cialized equipmentloca包d at the university on a time-available and c。“嘿recovery basis. They also have access to the university' s library and information retrieval resou泌的. Employees are able to enjoy the athletic and cultural events on the carnpus. Industry research specialists have the possibility ofadj翻ct facu Ity appointrnents , and continuing education and traini均 opportunities for employees are possible through special classes and seminars. Al帥, industry recognizes the importance of being close to a place of new idea囂, where 給chnological breakthroughs are happening. This is one reason why companies involving high technology are being attracted to locations served by m建jor universiti的 with significant research prograrns. In 品y

initial research on Science Parks , the following factors were cited considered most important by comp揖nies which had made the decision to locate in a ResearchlScience Park. as 出ose

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17 孟晶晶函商局


FACTORS CONSIDERED IMPORTANT BY COMPANlES LOCATING IN R單SEARCH PARKS Ran k

Percent consid學ring important $

Factor Subl艾滋n

residential ar四 wìthin

COI設激uting distan時

2 3 4 5 6 7 $

9 10.

11 12 13 14 15

Adeql紛紛 housingin m叫ium price 紛nge

Flexibility to expa給 Good public schools Advantage of recruiting university graduates as employ鈴S Availability of university prograrns to further education of peI蔥。nneI Availab泌ty of skilled t凹hnìcians Loca鈞。n near jet ai淨。,rt Favor的le site at attractive lease terms Es翎臨崩巴d graduate school with significant res帥rch prograrn Availabi1ity of m防ary fac i1ities A扭曲.etic surroundings of park Community cultur富lofferings Within 50 miles of urb認 center

95.6 94.7

92 .3 9 1.6 話 8 .5

87.7 87.6 86.5 85 .4 85.0 85.0 84.7 83.2 81.1

Strong 惡 raduatedep紅tme紛紛la切d 室。虹口祖's

*

activities

76.3

This percentage combines those who 位sted factor as “ important" or"somewhat 被lport前t'\ 前losef:泌的路 which

exceeded 75 與f帥nt are included. The university benefits from the retum on investment in the larld used by the research park. Faculty members enjoy opportunities for consulting near the university , arld there is the p闊的說lity of joint research pr<毒品悠 with industry. Employment opportunities for students arld graduates are increased , arld the univers旬, s image is enharlced in researchrelated resources. University development programs may receive contributions of specialized equipment from park OCCUparlts , and the area's overall economic development is aided by the jobs gene認ted by “ spin-off" comparlies .

高高至8


務修級變務務修緩變多

REQUISITES FOR SUCCESS There are ce投滋n constants which are necessary for the success of any venture regardless of how appealin皂 the concept may 00. This is al仰仗磁 of university輛 related research parks. Based on my stúdi郎, observ詣。那 of established research parks , and consulting assignments with emerging developments , 1 would identify the following as requisites for succ的 s in this t泊湖 ofchange.

I‘

D'EFINITE P lJRPOSE A clear definition of goals and objectives 必 critical. Before launching a research park or similar project, the sponsoring organization 做“s to ask the hard question ,“Why are we doing this?" lt is not enough that “othe的滋'e doing it and we shoulð be doing something." Any 秘ch developmentrequires the expenditure of substantialresources at the frontend and a long-term commitment to sustain the project until revenues are sufficíent to cover operating expenses. The reasons for establishing a research park will vary depending upon the circun豆豆tances of the sponsoring organization. τhesemay include fostering university-indus前y relationships , producing an econornic return on underutilized land , enhancing the prestige of the university , participating in econornic development of the area , and providing jobs for graduates. The “ cast of characters" has a way of changing from tirne to time in universiti帥, companies, and communities. A clear statement of purpose wi也 broad support at the OOginning of the project helps assure continuity when people and tirnes change. While a certain amount of introspection is helpful at various stages of the development, an abrupt stopping for prolonged reappraisals can slow the momentum so necessary for success .

19 晶晶晶晶


2.

DETAILED PLANNTNG From the regular list of factors consider,叫 by the industry in location decisions. there are several which are given added emphasis by research and technology棚related companies considering a science park. Two important planning elements are critical in contributi峙 的 the success of the project are as follows :

A.

Physical Plan The site should be immediately available with roads and utilities in place. It is an added advaηtage if moderate c。“ inventory space with flexibility to expand for future needs is available. In the fast-moving world of high technology wh仰 自ed蛇ision is made toexpand orrelocate, there is great prl的 sure to do it quickly. Immediate availability is often a prime consideration.τhe common rules of re泌的綠色edevelopment apply equally to a science park development . A transportation network is vi紹. Location near an inters紛紛 highway and within 訟 hour of a jet airport with major 給 service is highly desirable. If not near a jet airport, there must be several daily 位ights with an hour' s 位ight time or less to the major 位rports on qúality commuter airlines . There is an increasing desire for quality environmen t. One of the reasons that the industry has found the concept of the university-affiliated rese位-ch park so appealing is the high quality standards forthe overal1 ap戶arance most have achieved. Entrances with attractive signs and professionally designed landscaping. careful attention to streets and screened parking , low density building coverage with broad green areas are used to give the project a park-like atrnosphere. Con缸olled building designs monitored by an archi鉛ctural review board giving careful consideration to materials. colors , sign graphics and sitìng resu1t in an environment similar to the university campus which is attractive to scientific and technical personnel .

祉而“函函函 20

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務務傷多務修務傷多多

T0 continue to be successfl泣, the park administra位on should first have a comprehensive set of protective covenants and be firm in requiring compliance to assure that the project does not deteriorate after time. Exterior mainten 在nce of buildings , upkeep of landscaping , and the installation of attractive sign graphics 犯有 the most critical elements in enhancing the quality of the park . B.

3.

Marketing Plan The days of placing a “ for s揖le" or "for lease" sign on 在 potentialIy attractive parcel of real estate near a university and expectìng it to develop into a research/science park are long 紋路ce pas t. In this era of intense competìtion for desir論le science-oriented compani紹, there has to be a “rifle type" marketing approach to companies within selected industri的 which can logically be expected to benefít from the acadernic and research prograrns of the university. The most successful parks have been able to match the university and community strengths to industry needs. These shared interests may take the form of a single researcher pron部ent in a partìcular field , or by an entire departrnent which has strong acadernic and research capabilities compatible with industry objectiv侃 Evidence mounts that “ high-tech" comp制ies will continue to base location d成isions in p酬。n the recognized community strengths and the availability of university resources .

DEDICATED PERSONNEL fOn!anÎzatíon Structure)

Those research parks which have b的n successful are characterized by clearly defined and forceful managemen t. Whìle this can take any one of sever在1 fom嗨, there must be an identified legal authority or “ Board'\This may be the goveming board of the institution as 泌 the case with Stanford , Utah and Tex誰S A&M , or it may take the form of a separate authority such as the Research Triangle ìn North Carolina , Arizona State Universìty Research Park , and Virginia Polytechnic Institute. 爛""/ddddd..Ø'...0仰翩翩翩侈懈努翩翩仰抑物鈔翩翩翩翩切的仰仿佛~

21 屆晶晶晶


Execution of the program must be carried on by a highly motiva紛d full-time director and staff. There must be sufficient delegation of responsibility in order for the director to effectively execute a marketing program. This manager must have the ability to insure adherence to project covenants , monitor day-tc←dayac位沿街s , and also negotiate with pr.的pective tenants with assurance a deal can be closed provided the conditions are within previously approved guidelines. Some universities 紋-e engaging real estate development groups to take full responsibility for developing and mana忍ementof the project. Segmented responsibility , confused authority and operating guity provide a sure formula for failure.

4.

ambi輸

D'ETERMINED PERSISTENCE One of the unique characteristics of a science park is the relatively long time period needed to become established and successful. Considering the time required to develop such projects, long 於“m support and cont泌的ty of effort are es話說ial. There have been ex在m蟬的 of science parks funded by legislators which did not show enough progre的 to satisfy political time pressures. Subsequent appropriations were not forthcoming and the projects failed. This prompted Govemor Luther Hodges, one of the principal suppo巾的 in the development of the successful North Carolina Research Tri如gle Park , to advise me, legislators. They are like child終nwhoplants悅ds and then dig them upeve可 day to see w ™ hy they are not 忍.rowing." τhose who think that a project can be started and replicated what has

been achieved at Stanford and North Carolinain acompressed time frame are goin皂的 be sadly disappointed.

5.

D'EEP POCKETS ( Adeouate Financial Resources ) As in most real estate developments. there is a need for substantial resources to be commit紛d 紛 develop an attractive site 組d initial

晶晶晶晶晶孟 22


buildings. The availability of a quality site and appropI話給 buildings can be effective marketing and promotional tools . Because of the long鴨綠nn nature of the research park development and the time and effort requiredωbring it 給鑫 stage where it can be self supporting there will need to be adequate financial resources available to support it through the start-up phase. If support is withdrawn prematurely any such project is likely to fail 無

SOME CAVEATS Those who launch into the effOlt of developing a science park should be aware of some caveats. They need to temper expectations to reality. Few science parks are immediately successful. It is nec借給勾結 engage in a great deal of planning and preparation which is sometimes complex 閥d alway~ t扭le consuming. Those involved should anticipate a fairly long time frame on the road to success. It is well 給您member the experience of three science parks generally considered as achieving succe銘 Stanford has been involved in the process for 40 years. The Research Triangle in North Carolina for 30 years , and the University of Utall for 20 years. Few achieve significant re如lts in less than five to seven years. It is well to keep 血 is pers伊ctive.

Even with all the favorable aspects of an emerging science p盈rk , there are inevitable possible adverse factors. There may be concems expressed about more traffic in the ar悅, a possible expression of “ unfair" competition in a project sponsored by a govemment agency or university , and pressure on the supply of trained labor. It is well to realize that tr緝令。ffs are associated with most new developments.

SUMMARY These are interes的ng and challen鑫ing 也nes in the development and administration of science parks. If the challenges of change can be recognized and managed ,鑫nd the elements required for success adhered 帖, a thoughtfully planned science park can be an exciting vehicle for innovation and economic growth .

23 孟晶偏偏


THE DEVELOPMENT, MARKETI控G AND MANAGEMENT OF TECHNOLOGY PARKS : TI肥 S的GAPORE SCIENCE PARK EXPER阻NCE

Chong Siak Ching Technology Parks Pte Ltd Singapore

ABSTRACT The paper gives the background on the rationale and objectives of developing the Singapore Science Park. It identifi的 the prerequisites for success for such a development and how the Singapore Science Park has met them. It also shares Technology Parks Pte L紹 's experience in the successful developmer哎, marketing and management of the Singapore Science Park . 1.

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DEFINITION The term 法cience parks' has often been used interchangeably with 'business parks' ,進 technology parks' or ‘research parks' .也ough it would be good to distinguish between them as their mission and objectives differ. One thing in common , however, is th自 emphasis on a high 偎在Ii紗, low-density park-like environment to eocourage the growth of high “ technology businesses .


property-based initiative whích has fonnal and operational links wÍth one or rnore universíties , research centr峙, or other institutes of higher education ; is design吋 to encourage the forrnation and growth of knowledge-based industries and other organis泌ions nonnally resident on site; has a rnanagernent function which is actively engaged in the transfer of technology and business skills to tenant organlsa tI ons. The above definition quite accurately describes the Singapore Science Park though the links with the institutes are inforrnal rather than forrna l. Unlike rnost science parks that are university-driven developrnents , the Singapore Science Park was developed out of a governrnent in組織tive for econornic reasons .

B USINESS PARKS

In Singapore , a science park ís defined as a s如cialised förrn of business park. The busíness park concept was created to satisfy the property requirernents of new technology刪 based busínesses that wish to accommodate their wide range of activities under one roof. These activities often range frorn research and developrnent (1至&D) , product design , rnanufacturing , distribution and servicing. Presentl y, there is a lack of premi ses that are perrnitted to accommodate in one location , such varyin學 activìties (currently , rnanufacωring activities rnust be located in industrial estates , office functions in office buildin斜, etc). To attract or retain such d的 irable high value-added cornpani的 in Singapore , bu泌的的 parks are created .

Science Parks would be res出ct吋 to firrns whose prirnary activity is research 組d developn泌的, which also h在ve exísting or potentíal business links with a nearby teltíary education institution or organisations already established on the science park.

25

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The International Association of Science Parks (IASP) defines a science park as a

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Besides science par隘, other specialised forrn of business parks are planned for development in Singapore such as medical parks (for medical research and services) and aviation parks (specialising in aviation/aircraft services) .

2.

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OBJECTIVES OF THE SINGAPORE SCIENCE PARK In the 1960's and 1970's , Singapore successfully pursued an industrialisation program to promote economic growth. By the late 70's , the increasing labour costs and chanεing economic conditions in the forrn of inc跨越íng global competitiveness and Pro紀ctionism, necessitated a review of her indus肘al stra記gy. In 1979, the govemment embarked on 轟n Ec onomic Restructuring process , identifying highervalue翩added. knowledge-based and technology-intensive industries and services as the new engine of growth. The importance of science and technology as an instrument for restructuring Singapore's economy is reinforced with the formulation of an R&D pl油 to be implemented by the Singapore Science Council (SSC). Since 1991 , the SSC has been upgraded to the National Science And Technology Board (NSTB) which is tasked with the mission of promoting indust可-driven R&D. The mai鈴 objective of Singapore's R&D policy is to improve the design and development capabilities of its indus割的 to develop ω防petence in the new technologies which are expected to fuel economic growth. It is an integral part of the R&D strategy to provide the necessary infrastructure to support the R&D activities. These would be : the establishment of centres of excellence in research and tramtng; the provision of 給 search grants and fiscal incentives; the developme餒。f the science park to provide a focal point for ind 帥的aI R&D activiti的組怯ke place.


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A site at Kent Ridge , a natural hillock overlooking the sea and i但 ated next to the National University ofSingapore (NUS) , and near

the Jurong lndustrial Es侃侃, was identified for the development of a science park. Jurong Town Corporation (J TC) , the 鑫ovemment agency for industrial estate development was en凱lsted with the master-pl孟nnÎng and development of the science park . The key reason forcreating the Park is to provide a focal point for the location of high-tech activities , R&D facHities and brain services in science and technological fields. Th e location of the Park near the university and industrial estate is also intended to foster cl的er interaction and exchange of knowledge between university and indu總ial sectors. The objectives of developing the Singapore Science

Park 紅紅

to. promoteand develop hIgh編technology indus割的 and highly嘲 trained scien位鏘, technocrats and engineers; to stimulate research and innovation in m誰nufacturing and information technology; to foster interac討onωnong researchers in the Park and the institutionsofhigher leaming such as the National University of Singapore; to facilitate the Economic Development Board' s 伍。B) invest ment promotion efforts by centralising R&D personnel and facilities in one “ nucleus area" at Kent Ridge as a showcase of Singapore三 R&D prograrnmes; to pool and sh轟re R&D facilities 個d services in the Park so as to bring about “ agglomeration economies" through the linkages established between firms in the park. “

3.

PREREQUISITES FOR SUCCESS Before the development of the Park , attempts were made to learn from established science parks around the world ‘ Some factors that were identified as critical to the success of such developments were:

27 屆聶晶晶


pleasant , aesthetic environment with good physical planning controls; good tr訟spo啪啪n and communication network; proximity to institu益。的 of higher learning; presence of local research institutes and R&D promotional organisations within the Park; availability of R&D incentives I grants and other economic incentives; availability of university graduates and skilled workers; strong financial capability of park developers to survive initial losses over a long period of time. (The typical gestation peri叫 for a park to become profitable or even to break even w的 found to be between 10 to 25 y臼rs.) In so far 品 the pr海requisties for a Science Park are concem叫, the Singapore Science Park has met them with a high degree of success.

Environment

The development of the Science Park is guided by stringent planning controls to ensure that a ‘ quality' low-density and well-landsca許d environmeht is created. Guidelines relatin皂的、 intensity of development , height controls , site coverage , amount of public and private gre侃, etc. are imposed by the planning authority. A Master Pla終 of the development must be drawn up and submitted to the planning authority for approval before any development commences. The approved Master Plan will be used to 伊ide and integrate all the individual developments within the park 給你sure a commonality of 0吋缸世嗨,

Communìcations Only 8 km 傘'om the city , the Science Park is strategically located and well欄linked by expre鈴ways to the city , the major industrial estates and the air and sea ports. Th e telecommunicati on network in

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Singapore is readily accessed by Ù1e Science Park tenants. A national S & T network Ù1 at will link elec缸onically , academics , researchers and indt泌的揖lists in Ù1e scientific communi句, is being planned. 'TechN紋, will have acce紛紛 INTERNET, a worldwide research link-up of many networks connecting tertiary institutions and commercial R&D companies .

Tertia川 Institutions

In the area of linkages wì Ù1 an ìnstitution of higher learnin怠, our close proxin通ty to Ù1e NUS , and polytechnics encourages close ìnterac紋。nandexch組ge of ídeas between Ù1e R&D comp部 ìes and Ù1e academia. Research cenU1的是nd institutes wi Ù1 in the park provides Ù1e necess龜ry technology support services to oÙ1er R&D companies. They are also a source of specialist manpower and collaborative partners in technology transfer projecls.

F inanciallncentives

'NSTB , Ù1e national agency for promoting R&D activities in science and technology provides Ù1e n缸essary ìmpetus and support for the growÙ1 of R&D companies in Ù1e Park. It acts as a '0泊。 stop τechnology Assistance Centre' providing services ranging from research grants to assistance in commercialisation of R&D results. NSTB alsoactively promotes tie-ups betweenresearch institutes and industry , to crea給 technology transfer from academia to industry.

Other financial incentíves available to r的earch爛 oriented companies ( but not limited to Science Park tenants ) are administered by EDB. These include : longer tax holidays for companies wi Ù1 substantial R&D operauons double tax deduction of R&D expenses capital incurred in acquiring approved knowhow or pa紀nt rights , qualify for faster write-down 29 這昌晶晶屆“


50 % tax allowance on investment in R&D related capi主al expenditure tax-exempt R&D reserve may be set aside from company's taχ鑫ble income

聲終結追挫缸

In the area of skilled manpower, the nearby tertiary and training ins益tut的 are sources of manpower for Science Park tenants. One of NSTB's objectives is also to develop more research scientists and engineers to 館pport the growth of R&D activiti的 in Singapore. From an existing pool of 28 research scientists and engineers (RSE) per 10 ,α治 labour workforce , NSTB' s target ìs to reach 40 RSEs per 10,α)() by 1995.

Stron í! and Committed Develoner It was recognised that a strong government initiative is necessary to ensure the 在uccessful development of the Science Park so that the economic objective約組 beme t. Assu嗨, JTC , a government agency who has so successfully developed industrial estates to support the indus汀ialisation 總ategyofthe 沛,趴 was entrusted with this projec t. A national agency would also have the financial capabilíty to take a long-term view for such a project.

4.

PLANNING AND DEVELOPMENT The Singapore Science Park was planned for development in 4 phases giving a totalland area of 109.80 ha: PHASE 2

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AREA(激ec話res)

29.50 20.26 47.∞

13.04


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Phase 1 commenced development in 1981 and would be fully developed and occupied by 1993. Infrastructural works are being carried out at Phase 2 which is expec能d to welcome i必伽st tenant by 1992/93. Phasing of the development isn成ess紋y to reduce holding cost so that the land can be acquired , prepared and developed according to market dernand. It also enables the park developerω adapt to changing characteristics of demand.

7YPES OF PREMISES WITHIN THE PARK To encourage the forrnation and growth of companies within the Park , 3 types of premises are provided : 1.

2.

3.

Research units - mul絨線 tenanted premises for new ‘ start心p' R&D companies; CINTECH (Centre for Inforrnation T echnology) -office premises desîgned wìth the computer software and information technology tenants in mind; Land for lease to organisations that wants to develop their own purpose-built premises.

Today , there are a total of 84 tenan必 in the Park , employing over 3α泊 workers and occupying over 4∞,α泊sqm of space.

Y"ECHNOLOGY CORR lDOR The key toa thrivìng and successful R&D community ís people , who must be support吋 with housi嗯, recreational and social amenities. Bycreatin學 an attractive livi時 environment to support and complement the R&D working environment, it is hoped that scientific talents c訓 be attract吋 and re划ned in Sing揖pore. This is the key objective of creating a ‘ science city' or 'Technopolis' in Singapore.

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development 切 i ntωo a mini Techr訟船 Eωop 伊 01設is 偕 0r St釘ret絃 chi 鈍嗯 g oveαr 15 k訟 , this area presently contains a number of tertia旬. research and training institutions , high-tech manufacturing

31 屆且可


concerns , the Science Park and social and recreational amenities such as housi啥, schools and spo路 facilities. It already has the elements of a ‘Technopolis' and will be further developed.

S.

PROFESSIONAL MARKETING AND MANAGEMENT Companies are attracted to the Park for various reasons - the prestige of locating within a R&D community , to tap on the synergies 是nd linkages created with the tertiary institutions or other R&D companies , or the conducive park必ke environment, for example. These factors can only come about with a professional marketing and management team, committed to 自e Park' s mission and 0持那tives. ln April of 1990, rrc set up a subsidiary company , Technology Parks Pte Ltd to focus its efforts on the development , marketing and management of the Sèience Park, Business Parks and other related activities. Since then , Technology Parks has taken a very active role in the promotion of the Park as well as in introducing improved facilities and amen泌的 into the Park .

T'ARGET MARKETS The Science Park is marke給d to high-tech companies with substarν 必al R&D activities. Companies in the key technolo終y fields iden的fied as relevant to Singapore's eωnomic activiti的 are tar伊始d 是t as Science Park tenants. They are in the fields of: 1. Infonnation Technology 2. Microelectronics 3. Electronic Systems 4. 說anufacturing Technology 5. Materials Technology 6. Energy , Water, Environment and Resources 7. Food and Agrotechnology 8. Biotechnology 9. Medical Sciences 戶函面商函聶 32


In promotin怠 the Science Park. Technology Parks works in close collaboration with severalgovemmentagencies such as EDB. NSTB , JTC , and the National Computer Board (NCB) . Today. we have a very good mix of tenants in VarÎOl的記chnologies within the Park; a number of 有vhich are Fortune 5∞ companies such as DUPONT , Sony , Exxon Chemicals and AT & T.

T'ENANTS SELEcrJON GUJDELlNES

Companies that are admitted 泌的 the Park must be involved in R&D activities and they are evaluated using the following 5 criteria: 1. Investment and value-added The fixed asset investment per unit fI oor area and the value added per worker is evaluated. Higher ratios are typical of 能chnology-intensive operations 學

2.

Mmψower Profile

A measure of the R&D content of a company' s activities can be provided by the ratio of PhDIMSc lB Sc to non degree holders in its personnel make輛 up. Est在blished and successful R&D operations will have larger proportions in higher degree levels. 3. R&D Content A project will ev在luated for its R&D content q泣alltativel y. Some production or service-如ented operations may score high in the previous quantitative paramete悶 .butm直y not be considered for admission because the operations are low in de到阱, development and research content. The absolute value of the company' s R&D budget per year as weU as Îts proportion to the to組1 operating budget are also key factors that are considered. 很 Cαtalytic

and Strategic Value Some opera泣。耶路ch as National Computer Board (NCB) 。r the Singapore Institute for Standards and Industrial Research (SISIR) are considered desirable because they

33 函屆


provide technìcal support and undertake collaborative research with some R&D frnns , thereby providing catalytic and enhancement value to the Park .

5. Negative Factors Companies admitted to the Park must not be land-intensive or pose a threat ofvisual in仙 sion.

polluti呃,

The evaluation of tenants for admission into the Science Park is canied out by a Science Park Adrnissions Committee chaired by the NSTB.

We recognise the 吵 sp缸i凶 叫1 昀 a re 叫 qlωI 泊il1惚 椏 e me E遐 侃 鈺 E1t悠 S ofour ‘可%叫 制 h1ig 阱 h-固桔ca 絃z的 削 Tη 抖 y f徒ir時 1啥 g out im m 跛 泌1p 仰 ort 傲妳 t泌a 滋 做nt R&D work in the Science Park. We 閉路re that they opera毛e within a conducive environment with the best po路ible estate management support. For example. good landscaping design and maintenance is necessary to maintain the green and park-like environrnen t. Quick r剖ponse to maintenance n認為 is critical in view of the expensive equipment installed in the Park. and in particular. for information 紛chnology tenants where a few minutes of power breakdown means thousands of dollars in losses. Round-the-clock maintenance service is the refore. provided. The highest level of security is provided to safeguard the tenants' research findings or equipment. through 24刪 hour 錯curity and CCTV surveillance in some buildings.

CONCLUSION The Singapore Science Park was develo抖d to provide the necessary infrastructure to support Singapore's R&D policy in its economic restructuring program in the lale 1970s. It is intended to be the focal point for R&D ac泣vities to take place and to encourage closer interaction resulting in technology transfer, between the academia and indu錯y. Thus. it was loc鑫ted next to the NUS. and in close proximity to the estabHshed Jurong Industrlal Esta紙 自=函晶晶品 34


Today , the Singapore Science Park is recognised as a prernier research park in the Asia-Pacific region . The success of the Park can be attributed 始給veral factors. 1 believe , the most important is the focused way in which the development was carried out the identifìcation of ìts 喇削階, the choice of a strong and comrnitted developer followed by professional marketing and management of the Park - and its continuìng relev祖ce to Singapore's econornic policies .

35 函函函函昌


THE FIRST DECADE OF THE HSIN CHU SCIENCE PARl支支持 TAn有{AN ﹒ A CORPORATE PRACTITIONER'S PERSPECTIVE Lawrence S. Liu Lee and Li Attorneys at Law Taipei

ABSTRACT The author traces back the background of the development of Hsin Chu Science Park in the seventies and highlights the current charac teristics of the Park and the factors for the Park's success. While pointing out the difficulty in copying Science Park experience , he


concentrate efforts to develop financial and other service industries such as trading , it is easier to exte拉伯 the "human capital" strategy as the economy upgrades itself. This was the policy envìronment for the establishment of the Hsin Chu Science Park in Taiwan in the late 1970' s. Planning for the Science Park at high govemment levels began during 1976 , and the Science Park was officially set up in December 1980 by the National Science Council ( NSC ), a cabinet-Ievel agency in charge ofco胸前dinating policies on scientific research. The goal for the Science Park was clear: to attract high-給ch companies to set up operations in the Science Park , so that it will be an incubator for technological expansion across the island. As a reminder ofthis commitment, the gateway to the ScienceP在rk takes the shape of two letters of the alphabet: “ H" for high , and “T" fort齡 hnology. Thus far , this attempt has been successful; after the first decade , the Science Park now claims over 120 resident companies who employ over 22,α沁 employees. Investment in the Science Park exceeds NT$65 .5 billion . Even at the plannir灣 stage, it was clear that technologies tend to be “relational" and “environmental'\Technological development and 釘在nsfer of technology require constant interaction among technícians and engineers. Owners of technologies also require a conducive environment to attract and retain the best avail謹ble talents. Reflecting these considerations , the Science Park was set up in Hsin Chu , about 70 kilometers from Taipei. While this formerly convenient location has become more distant as the Sun Yat-Sen Highway becomes somewhat more congested , the construction of the Second National Highway should alleviate congestion to and from Hsin Chu during peak hours. The determination of the Science Park' s loc錯。n was also influenced by the academic and research environment surrounding Hsin Chu. National Chiao Tung University and National Tsinghua University , both leadìng universities with a strong commitment to scientific and technological research , are loca紀d in Hsin C拙, so is the govemnient勵餾彈。此ed foundation for technology transfer ‘ Indl泌的al Technology 秘d Research Institute' (ITRI). This environmentensures that Science Park companies will be able to continue 10 tap into a pool of well trained 能chnologic羽 絨lents. In addition , Hsin Chu has one of the largest settI ements of 出e Hakka people , w ho are known to be among the h誼通est working Chinese.

37 函兩逼面兩


Theen位re

Science Park has 2 ,α泊 hectares. At the present. about 380 hectares are fully developed for industrial use. An additional 2∞ hectares was acquired in 1990 for expansion which will be comple關押 1994. However, space sc滋"CÎty has shown the physical constraints of the Science Park. These constraints notwithstanding the concept of technological development h蟲s caught on , so that the concept of science parks 仿制ence citi的 may be expanded over time to the entire island.

The demographics of Scíence Park comp路iesepitomíze Taiwan's focus of its technological segmen t. These companies can be broken into eight categories: 1. 2. 3. 4. 5. 6. 7. 8.

Computers 轟nd peripherals; Integrated circuits; Telecommunications; Opto-electronics; Automation;

Bi∞ngineering;

Environmental technology; and Energy technology.

About one-third of these companies are in the computer and peripherals índus住y. the largest representation in the Science Párk. Their 1990 output, valued at NT$ 37 billion , accounted for almost a quarter of the entire infonnation índustry output in Taiwan. The IC industry has the second largest representation in the Science Park. claiming about a quarter of the resident companies. In rece泌 years, the telecommunications industry represents the fjμtest growing indus住y in the Science Park. The total paid廿 C叩i怯1 of Science Park companies as of 1990 exceeded NT$ 42.7 biIlion . Among the 84 or so locally owned companies , the more well known are Acer, Microtek and Microelectronic Technologies, Inc. In addition , the Science Park has attracted tw侃ty eight American companies , four European companies, and four Asian companies. Many of the founders of Chinese-owned Science Park companies are trained in the United States. The fact that so many have retumed and set up their own companies (quite a few of them are now listed on the Taiwan Stock Exchange) demonstrates the success of reversing the brain drain in technological 叫ents and tuming it into a brain gain . 局面晶晶高 38

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About 的% of the products of Science Park companies are exported. This indicates the export orientation of the鈴 companies. However, in recent years , their sales in the domestic market has increased by 益bout 4。你 Discounting the impact of currency appreciation , this trend shows the maturity of Science Park companies and the increasing import substitution of technological products. Leading overseas markets for Science Park companies are North America , the Netherlan啦, the United Kingdom and Hong Kong . The Science Park c1 aims a relatively young work force; the average age is about 30. 10 1990, about 459志。f them had academic degrees above the juoior college lev祉, fonni略 the backbone of the technological talents in the Science Park. According to a survey by the Science Industrial Park Administratìon (SIPA) in 1989 of 90 Science Park companies , R&D expenses are well over those of. s旬. the electronics indus位y in Taiwan. The results of this survey , in 終rms of R&D cost relative to production value (in NT$ million) , are summarized below:

1. 2. 3. 4.

5. 6. 7.

Integrated circuits: 77/1 ,148 (6.7%); Computers/peripherals: 137β ,438 (4%); Telecommunications: 25約79 (3.7%); Opto-electronics: 4/1 35 (3%); Automation: 8/42 (1 9%); Others: 2nl (2.8%); and Total: 253/5 ,513 (4‘69志).

The Science Park is admiois紛red by over 4∞ employees of the SIPA. which was established as an agency under the NSC. As of 1990, about NT$l billion has be叫 all∞ated forits budget, including expenditures for lànd acquisition , infras釘uctw海 cons當uction and funding for the National Experimen給1 High School which was chartered to provide a special education environment for children of retuming engineers working for Science Park companies. Land in the Science Park is leased to resident companies , whereas factories could be built by them 肘,給 in the case of s切ndard factories built by the 訂PA , leased. In addition. the SIPA provides training for employees of Science Park companies.

39 函函盲晶晶益區


三二削翩翩翩0;;;;;

The SIPA also

administer事 a Warehousing 個d

Shipping Center and

main給insatran今shiprr誼~ntzonein theSciencePark, whichis aduty-free,

bonded area. Facilities include an automa紀d wareho肘e, a hazardous articles w鑫rehouse, a warehouse for import-export goods and 轟 co鈴綴iner inspection yard. The Uni給d Servkes Building houses customs offices, customs brokerages , banks and other service organízations . Financial grants , up to NT$ 2 million each , are also offered to resident companies in accordance with the SIPA's Guidelínes for Encouraging Innovative Technical Research and Development Projects in the Science Park . The Science Park program is embodíed in the Statu毛e for the Establi油­ ment of Science Parks (Park Statu鈴). In conformity with the spirit of the Statute for Encouragement of Investment ( SEI ), Science Park companies are enti tIed to select between income tax holidays ( five years for operating reve酬的 arising from new investment and four years for those from expansion projects ) or accelerated depreciation. Applicant to become Science Park companies , however, must commit to engage in such technological and related manufacturing activities as approved by the SIPA . The SEI expired at the end of 1990, indicating a new era for Taiwan's indu總ial policies. Under the replacement statu毛e effective after 19鈍, the Statu毛e for Upgrading Industries (SUI) , tax credits based on activities instead of product悍的fic income tax holidays for operating revenues have become the policy tool used by government authorities to encourage investmen t. This transition reflects the government' s reluctance to use resource-distorting , product-s阱cific incentives , and the awareness of an increase in fiscal burdens imposed by foregone tax revenues. This policy change has affected the incentive policies for Science Park companies as wel l. As of the time of this writing , efforts 轟re underway to amend the Park S絡組te to conform with the incentive program under the SUI. The Science Park programreflects govemment policies inτaiwan since the mid-1970's to upgrade i的 industries and their technological achievements. Over tíme, this program has blossomed. However, what was thought to be desirable has now become a mus t. As Taiwan 、

40

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economy matures , labor and land cos必 have increased. Although Taiw 闊 's productivity in key industries. is still respectable, there are increasing concerns with its erosìon. Nonethele絡, a strong commitment to technologies will continue to form the basis of the governmer跤, s industrial policies. As this paper has identified in the beginning , a technology policy is particularly suited to Taiw棚 's competitive advantages: deve1 0ping human capital. In the early years of Taiw甜 's economic development, many college graduates in sciences. and technologies went abroad , F認18.fÍly to the Uni能d States , to pursue advanced studies. For personal and professional reasons , many of them have remained in the U鼠忌ed States. But limited opportunities in advancement to the top in a foreign job market and the entrepreneurial urge to start their own companies hel與d reverse the brain drain. Californ泊, for examp圾, many ethnic Chinese engineers left their employers , typically in a major indus咐al corporation , to fulfill their dI濤在ms of going on theìrown. Whìle 曲e Silicon Valley is a 仰。d base forresear能 and development activities , a low-cost, high-productivìty manufacturing base has to be found. Taiwan and 他 Scienc念 Park program filled the need. In fact , one visits the Science Park will find s當iking similarities between that environment and that in the Silicon Valley. This , of course , was intentional. The Science Park was built with a consCÎous design to lure these returning scientists and engineers by fostering that sense of similarity and comfort .

In the Silicon Valley in scient悠悠 and

Another import from the Silicon Valley is venture capi叫 investment. This program received government endorsement in 1982 , when tax incentiv的 for venture capital funds and projects were written into the SEI. The Development Fund of the Executive Yuan ( that 心, the C轟binet ) and the government‘ owned development bank, the Bank of COI扭 nm 紋lUnicat滔ions趴, are the two leading institutions providing seed money forhi站gh.恥-忱chpr~ 吋 1司ject怨 s in Taiwan. Unlike the Silicon Valley practice, however, government-supported ven泌reprojec必 are lir紛紛 to those consideredωinvolve high technolo41

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晶晶晶晶函iiiiii

gies. At least theoretically in the Silicon Valley that does not have to be the case, venture capital there simply means capital seeking higher returns andfund providers willing to take higher risks. As the tax and incentive policies of the govemmentin Taiwan have changed overtimes , venture capital investment Taiwan style has become more sirnilar to that in the Silicon Valley . The growth of Taiwan's capital market beginning in the rnid-1980's nicely fits the exit strategies of investOI在 in high-tech companies , including Science Park companies , in Taiwan. This may be fo時lito肘, some of the investors only intended their Science Park subsidiaries in Taiwan to become a reliable manufacturing ba路. ln fact , when price earnings ratios for Taiwan's listed companies continued to increase and surpassed those comparable companìes in the United States in the keydays of 1987 and 1988 , many such Science Park companies hurried to flip themselv的 into the parent companies to arbitrage on this favorable development . Fo踏過旬, or even luck , of course cannot fully explain the success of the Science Park. Rather, just before the Science Park was to be launched , the international political environrnent was much more hostile to Taiwan. ln la泌的沛, the United States de-recognized this island republic. But this setback did not dam伊n the comrnitment by governrnent authorities to implement the Science Park program. In hindsight, the tirning of the launching of the S的個 ce Park despite diplomatic adversities was a wise decision .

The past decade saw drastic changes in Taiwan's econornic , political 如d soci在1 envìronmen t. Its foreign exchange controls have been substantially relaxed , reflecting the financial capital accumulated over decades of economic growth. De-regulation also has taken hold in other areas affecting the operations and bu位給ess s臨終割的 of Taiwan companies. Many Science Park companies have now gone abroad to make acquisitions in order to gain access to 級chnologies and d泌的bution channels . As global economy becomes more interdependent 組d competiti嗨, strategies for companies and govemment inτaiwan for the 1990's 42


will be differen t. The Science P轟rk experience may not be easily Its success wilI nevertheless serve as a good model for other countries with similar aspirations to draw lessons from. In places such as Hong Kong , there has been a 1訟ssez faire and a suspicious a位itude of government involvement in indus削al policies. However , 自is writer thinks it would be wrong to argue that Hong Kong , thus , does not or need not have an industrial policy. copi縛

Development of 能chnologies is a risky enterprise. In addition , thère are c制約n externalities involv,祉 Take educ在ti凹, which is a classic ex經nple of legitimate government concern. In many ways , developing 吋vanced technologies , through a science park or otherwise , is not that different from m刮到泌的 1啥 high educ 鑫 tion standards. The Confucian Chinese culture is also particularly suited to this polìcy. Su伊rimposed upon an economy which ( despi也 some government pl鶴的時 for economic development) has relied primarily upon market forces and private initiatives , this policy h諮 produced a successful Science Park program in Taiwan. Hopefully , the success of the Science Park and what it took to achieve it will be informativeωpolicy make rs else where .

43

iiiiiiiiiiiiiii晶晶


SOPHIA ANTIPOLIS - DIAGNOSIS OF A SUCCESS STORY François Weill Adviser to the President of the Minist句 of Public Works and Sophia Antipolis Science Park Paris

ABSTRACT The author w i11 present an appraisal of the Science Park of Sophia Antipolis: its main features and the main players. He will also discuss the economical influence of Sophia AntipoIis on its neighboring area , and the necessity to carry out further expansion .

INTRODUCTION Sophia Antipol芯, a southem European technical park ( slide 1 ) , is located on the French Mediterranean coast ( slide 2 ) . Since its 1969 beginning in a pine forest several miles inland from the Riviera, the history of Sophia Antipolis can be summarized in two fi伊res: 850 businesses and organizations and some 14 ,3∞ employees. Before commenting these figures , however , let's place Sophia Antipolis in the context of the larger European economic structure “ both

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historically and in terms of current development tendencies. The historic structure comprises a northwest-to-southeast arc (山e blue banana on the slide) joining English , Belgian and Dutch metropolitan concentrations , the Rh ine valley and northern Italy. Current tendencies . often referred to as the revenge of the South - suggest the progressive development of the Mediterranean arc stretching from northeastern Spain through southern France to It aly. Growth here benefits from the existence of established econollÛc nodes , the general relocation of activities towards areas with better living conditions ( a phenomenon experienced in the USA over the last 20 ye訂s ) and the independence of technological activities with respect to 血e presence of raw materials and energy sources . Given 血is context, the sole proxir世ty of Sophia Antipolis to 出e articulation of the two axes is already a significantly important s住ategic factor to justify its continued developmen t. Sophia Antipolis also benefits from the at甘active intemational image of neighboring prestigious French Ri viera resorts .

A few slides will give you a better idea of 1∞ation and site . Slide 4 Slide 5 Slide 6 Slide 7 Slide 8 Slide 9 Slide 10

Sophia Antipolis and the French Riviera Sophia Antipolis occupies a territory equal to f(1,4)出at of Paris Aerial view towards the East with Nice in the background Aerial view towards the South-east Aerial view towards the East Existing site plan Plan of the central area

Principal econollÛc data and a list of the actors involved will begin our diagnosis ( Slide 11 - the Sophia Antipolis logo ) .

1.

The park' s econollÛc development began in 1982 ( average annual growth: +24% for 出e 晶質尬, + 16% for job creation ) but accelerated

45

iiiiiiiiiiiiiiiiiiiiiiii


significantly in 1985 (如% of jobs created and 649毛 of firm installatíons have taken place since that date). Of Sophia Antipo恥,的o establishments , 20% are public organizations 惚惚arch laboratori帥, higher education , nationalized industries. ( Slide 12, 13 , 14 , 1 章). Slide 12Employment ( 559島 are manageme肘, of which 40% are foreigners - 50 nationalities ) Slide 13Growth in floor area - m 2 Slide 14Number offirms Slide 15 知如cipal stages of economic growth

The Park' s management and decision making structure has evolved over 會ne but has changed little since 1988. Today , the State 刪 the original founder - is but one of the partners represented by the president of an Intergovernmental Committee ( at a nationallevel )組dthe 封efect( 轟t a locallevel ). τhe principal responsibility lies with : The SY說IV AL , a directorate responsible for the development of Sophia Antipol怨, is a joint venture comprised of the following members: the 91 0cal authorities concerned ( Antibes , Bi哎, Mougins. Valbonne , Vallauris , Villeneuve , la Colle sur Loup , Opio and Roquefort les Pins). the Alpes Maritimes Do(e , ')p訂temen t. theNiceCÔ鉛d' Azur Chamber of Commerce and Industry The SAE說 Sophia Antipolis, financed by the Do 低 ')partement (51%) and the Chamber of Commerce and Industry and responsible to the SYMIV AL , insures the day today functioning of the park: programrning , promotion, commercialization and management . 3.

酬'---士?…一_46

One of the impoltant 的pects of the econornic success of Sophia Antipolis is the indÍl當t impact upon the Department' s economy (Slide 17). By the end of 1989 ,由is indirect benefit w泌的tima紛d at 口,制 rela叫 jobs and a supplementary mon惚ry product of 4.2 billion Fr鏘的. The importance of this induced effect obviously


泌spires

a large p紋t of the increased inter,的t in Sophia Antipolis development projects shown by local elected officials.

....

There is no reason to terminate a successful projec t. And this was the essence of the point of view presented by the Inter governmental Committee , during the CIAT( l) in November 1990 , in convincing the government to continue the development of the zone. 恥賈( Slide 18 , prevision 2叫治-2005 ) , while the momentum exists , the Sophia Antipolis land 給serves 紅軍 only sufficient for another 3 t04 yearsdevelopment at the presentrhythm. (Slide 19 , Iand reserves on January 1, 1991; Slide 20, map of the last 曲研 development are路).

As a result, studies of four expansion areas were launched. (Slide in the Alpes Maritimes) The largest site in terrns of development capacity 刪 8 ,α治 hec個res 欄 d師s not figure on 鐘te map but is 45km to the west in the Var Do 仰,‘ )par紀ment. ooe of the earliest available sites ( Slide 22, northern extension ) 認 just to the north of 師叫sting site. 泣,叫tensions

I would now like to give you a de包iled analysis of the different have en鞠叫做錯ccess of the Sophia Antipolis

elet臨總 which 句蝦捕。n.

PAIlT ONE: THE REASONS FOR SUCCESS L1

1'HE

DErEKMINA封ON

OF THE PUBLIC AUTHORITIES

1be next two slides 你出的 23 and 24) illustrate the major elements wbich permitted the p滋缸's success. I will come back to them in d磁il for one which is notmentioned w諮棚 and always is - essential: 恥 politi,叫 determination of the principal actors. 嘲

OAT=ù蜘rgov紋瞬間制 Regiona1 P加m的.gO個unittee

47


SophiaAntipolis beg詣的s the inspira郎的f visionary civil-servantl engineer Pierre Lafitte (then assis給nt dir位tor of the Ecole des Mines). Its realization was set 紛紛 action through a governmental decision b齡錯。紋 national pl鶴ning and development policies. (Slide 25) From the be惡innin怠, the State has been present 是te是ch 為cisive step 編 ìncluding the d的必ion last year to continue 伽 project. The S紛紛 was also an impo加nt financial partner capable of decentralizing or relocating government agencies , research laboratories and teaching facilities. Over twenty years , the State contributed 2 billion Fr韋拉cs in investments 是nd 4 billion Francs in running co臨. But this determination would not have been sufficient without that of. the local authorities: the communes and , above all , the Do(e ,‘) partement and the Chamber of Commerce. The success of Sophia Antipolis 刪 especially in recent years - is the result of cooperation betWeen all of these institutions. Other institutions have con削buted over the last three ye訂s but 1 will speak of them in a moment .

1. 2

L'HE NICE AIRPORT The Nice

Ai叩側 figures among 由e

major elements making a

significantcon出 bution. Asyoucan 時e, itis similar to that of Hong

Kong (Slide 26) but the mountains are not quite as close to the runways! The foIlowing slides illus個te the airport' s role t趾ough the number of existing direct links to Nice. (Slides 27 , 28 , 29) A smaller 訟中ort for business aircraft exists at Cannes-Mandelieu (Slide 30) also near Sophia An位polis. Another m茍or ele鞠nt is the road infr轟struct卸車nd the A8 highway which links Marseille-Nice to 1認ly ( Slide 31 ). The highway is gradually approaching saturation and the projected dou ling of this link to the no民h ( A8 bis highway ) will 紛紛 f齡ilitate access to the extension to Sophia An位polis.

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L3

T'ELECOMMUNICATJONS

Thírd basic infrastructure ( Slíde 32 ) : telecommunìcatíons. The natíonal T elecom ωm伊ny has made Sophía Antípolis a pilot site and an intemational showcase. Sophia Antipolis' concentratíon of Telecom facilití的﹒ research laborato泌的, the European training center ( THES草US ), i的 database server ( QUESTEL ) - has drawn the Europe轟n Standards Center as well as Digìtal Eq uipment' s worldwide telecommunications center. Obvìously , all ofthe fìrms benefit from the park's high level technìcal installations. But telecommunicatíons ( Slide 33 ) will never completely replace direct contact; there must be meetíng places.

正4

O UALITY OF LIFE The French Rivera's c1imate 訟d sunshine ( Slide 34 ) constitute another ofthe site's attractíons. And , while we are on the subject, tbe site also boasts ahiεh level of service in two other aspects: sports f缸ilities ( Slide 泊,詣, golf; 37 Tennis; 38 瑚dia; 39 cIubhous的) 轟nd fine food ( Slid的 40-4 1: bistros ) .

晨5

T'HE lJRBAN A登other

E川fIRONMENT

factor in the success of

Sophi鑫 Antipolis

is the urban

桶víronment. The most important city is Nice , 5∞'。∞ popul泊。泌 的lide42,的 and 44); the concentratíon ofhotels , shops and cultural

actívitíes is in keeping with its role as 缸aditíonal capital of the Fre nch Riviera and m在jor tourist center. Nice also has diversified 認 activities in services (Slide44) 組d industry ( Slide 45 ) and has 矗 large intemational conference center. 49

讀遇事盡量畫晝蜀道獨纖纖劉道喝溜蜀道噩噩盡量量通蜀道

Raillines compI仰 the infrastructure picture. Today , the joumey Paris-Níce takes 8 hours; tomorrow's TGV will take but 再在 1 ,2) hours .


Continuous development now stretches from Nice to Cannes ( Slide 46 Cannes Film Festival ). a city known for its intemational film festival. In fact , Sophia Antipolis' neighbors constitute a conurbation of nearly a million inhabitants. (Slides 47 -4 8 ) In an economy traditionally domi織關 by 給urism, 1990 gave the area its first year with total turnover balanced between tourist and non-tourist activities. The economic force of the zone is illu甜ated in the following illustrations. (Slide 49δ0) ,

/.6

1','HE lJNIVERSITY

Finally, the description would be incomple給 if 1 were not to mention the last major element, the University of Nìce. Created only 25 years ago, the university is in full expansion: 泣,技治 滋滋dentsin 1991 , 33 ,α治 fores認nforthey總r2故沁 (Slide51). The rapid 侃pansion and the quality of 給aching and research could be ω的idered essential factors in Sophia Antipolis' success. This is for two reasons: 位rst for the university in its own right as a reason for locating here (for the education for employee children); and , second , for the university as generator of qUalified staff for a fmn' s developmen t. It is generally accepted today 曲的自e quality of higher education and of research laboratories on or near the site are critical elements for ensuring the success of scientific parks. Th is now leads me to my second 給泌的 of fact位s for succ的s.

/.7

RESEARCH AND THE FlRMS AT SOPHIA ANTIPOLIS

The elemen心 1 have just expos叫 comprise the extemal factors contributing to Sophia Antipolis' success - even if several have developed at the same time and possibly could be relegated to a supporting role. However , the installation of rese轟rch activities creates quite a different synergy which sets the scientific park ap紋t from traditional i我dustrial parks. Far removed from the latter' s traditional serviced社給s , the technical park constitutes a specific offer for Î.....;j "闖關.

5。


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S戶cific fmns. The selection of fmns at the beginning requires provision of specific ac位vities , profiles and working conditio剝削 In effect, management of a technical park requires the same at的butes as that of any commercial finn: a name , severallines of products , etc.F說ns thUS play a double role , fromclients acquiring facilities , theybecome 棚 upon installation 關 standard bearers forthe technical qu aI ity of the park and elem侃ts in the sales-pitch for future park development programs. “

Major activity悔sectors ( SIide 52) belong to two principaI categones: data proc船公時, electroni郎, tele心ommunications ph制磁句, chem泌的, biology A third , less important catego哼, concems energy , earth sciences andma紛riaIs.

A.

Data processing, electronics. telecommunications (Slides 54-59) This field is a major cor對ibutor with : IBM (54) ,

Teχas

Ins汀uments(55), DEC , NEXT, theAirFrancecomputercenter

(56) , the concentration of 20 airlines' reservation systems , AMADEUS (57) , AerospatiaIe sa紛llite fabrication (58) , fiberoptic production (59) and French Telecommunications: QUESTEL , France Telecom , These帥. DEC , I' ETS I... Along with these major fmns,的emendouspo姆拉tiaI in public research labs includes the INRIA , an in毛emationally known ωmputer research center, and such engineering sch∞泌的 the ESSI , the ESSTIN ,… B.

Pharma哼"

chemistry. biology (Slide 60-62) Here again, aIongside OOW , WeIlcome,如d Rhône Poulenc (60 , 61) , we find an important nurnber of research organiza恥的 in phamacology and molecular biology and teaching facilities. Without forgetting the tr叫他onal perfume indus的 關d its reorientation towards essences for the food industry.

51


、函函已一一一一_ 52

C.

Energy, earth sciences. materials (Slides 63-64) Abundant sunlight allows the development of solar-cell 紀chnologies (63) in the same way that the proximity of the sea justifies oceanographic research (64). A major center for seismic research is under construction which will bring together fundamental and applied research and cons貨uc歧。n experts.τo which 1 should add the French Environmental Agency , the Centerfor Building Sciences and Techniques and the very import如t materials research center for the Paris School of Mining.

The science park does notexístjust to bring together high個:ch research and production but to stimulate the emergence of a lOG龜1 system of innovatíon based upon the cooperatio益 between private firms , research and 吋ucation. Weliketocall this “ technology transfer" or "cross-fertilizatíon'\The best examples for Sophia Antipolis concern the fields of telecommunications and pharmacology . To take the case of telecommunications , Sophia Antipolis has: The DEC worldwide center for tel,忍心ommunications strategy Several software companies τhe European Telecommunications Standards Institute Research centers and engineering schools - the Computer Sciences Institu給 (ESSI) and the joint teaching facility of the Telecom Ins位知 te (ENST) and the Zurich Polytechnicum France Telecom The presence of the highly regarded Institute of Phaimacology of the University of Nice played a large part in the decision to come to the sÎte by the No. 1 French firm Rhóne Poulenc.

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PARTTWO: THE PROBLEMS TO BE SOLVED This diagnQsis would be incomple殺- and of little interest to you - if 1 avoided the negative aspects of the balance sheet. For the preceding posi位總部pects should not be allowed to hide the difficulties - c認τent or 訟herited - and the we就nesses which constitute so many factors of 叫nerabílity for Sophia Antipolis.

11.1 W'EA KNESSES OF THE MANAGEMENT SYSTEM When the association of business directors formed in January of 1989,設leir ftrS t act was to dr!的s a list of grievances to be presented to the p曉rkm訟特ers such 鋪路curi勻, accessibility and business services. 1 might also 龜dd the uneven quality of architecture , weaknesses in the park's marketing and public relations, disorder in intemal and extemal communications entrustedωfour separate organizations, the lack of sufficient selectio必 in the choice of newcomers and , fmally , a multipIicity of administrative organizations responsible for the various in織lIation methods 組d procedures. Foreach one ofthese points , an action was taken or a solution found. Certain problems have already been eliminated, others will take more time; especially the improvement oflinks with Nice through the doubling of the A8 highway by the A8 bis. Il. 2

D.'IFFICULTIEi亨 IN

REALIZING

CROSS-FERTIL在~TION

The initial Sophia Antipolis con臼:pt imagined a community of resear唸 labs, teaching facilities and commercial flrmS formed 蛤 profit from the results of local rese紅'Ch. In principle ,也is co蛇 ept excluded all m部ufacturing ac位vity 品 such ( manufacture of products for the open market). This idea did not prove realistic for sever遁詞翩。ns:

theconsti泌的onofarese紋'Ch and teaching node is the result of a long maturing process which is only really possible in am司 orm償。politan area offering a sufficient densi恥

S3


technical innovation and creation by small firms constituting a spin-off or c間的-fertilization are, by nature, very selective phenomena. The demography of these 街頭S is characterized by a high rate of mortality. Whích implies an 詞ually high rate of creation and the presence of a favorableenvironment; unf,倒un蜘旬, the SophiaAntipolis site can offer neither\ The 臨終 of creation - a direct function of the strength and diversity of research s加ct泌的珊 could only be weak. In additi憫, the job market was seriously up紛t by the continuing arrival of large firms paying high salaries. Final旬, the absence of venture-capital financial institutions created an unfavor蓮說 e environment 偷 a problem which , .incidentally , has yet to be resolved. The lack of results i扭曲e pa泌恕, however, gradually improving due to an evolution in factors whích are both external and internal with respect to the Sophia Antipolis site: the University of Nice continues to gain in influence; the concentration of research fac Hities increases; the population is younger and continues to grow; the major 伽ms no longer present their grievances but have adopted a more participative attitude with res防ct to the local environment; these s矗me frrms have also realized that it is in their own interest to increase exchanges with the higher educ捕。n community; an associ鑫tion of laboratory directors will deal with this type of problem.

IL3 IAND SPECULAT/O N

The existing Sophia Antipolis site benefìts from a financial adv甜" tage with respect to the period when the land was acquired. This will not be the case for. the extensions foreseen wìthin the Alpes Maritim的 where the prices have increased 80% over the last two years (while Sophia Antipolis 抖ces have increased 5駒. And this has had an important impact upon two other difficulties , housing cos鉛 and the costs of new infrastructure.

r

54


紙灣當mately , French public authorities have considerable powers at a間r disposition

for countering this speculation when it endangers dIe realization of pr啪ts in the public in紛rest. (ZAD future dr:velopment zones , the ωnstitution of public authorities empowe叫紛 acquire land , the use of Public Interest Designations …)

... st.'JC1AL HOUSING

Not everyone at Sophia Antipolis eams large sal闊的. Fi nding Iaoosing at a reason喜ble price has become sufficiently difficult fcr the government 10 decide to launch 器 priority翩program of 越級stance for the construction of modera如rent dwellings .

.,.

1HE COST OF PUBLIC WORKS as well , the cost ofland weighs heavily. To which we must a組( for the A8 bis and the future TGV rail-line , for example ) the 恆。 cost of building in a difficult síte - narrow ∞astal pl呦, s紛ep sIopes ...翩 as well as the pressure from ecologists and pro記C切rs of the magnificent landscape who impo路 onerous technical 敘過utions (40% of the A8 bís alignment will be in tunnel!). (2) Her皂.

b

17JE INHERENT RISK OF FIRMS BEWNGING TQ A MULTlNATJONAL

1be last factor of vulnerability is related to the strategic choíces of m吋orfmns.

The example ofthe SEARLE should rernind us that the beadquarters of a multinational fmn is capable , at any moment, of closing one of its branch的 for reasons that have nothing to do with tbe logic of the site itself. Forac旭rtain

time , Sophia Antipolis chose to favour the arrival of The advantages are obvious and have certainly confmned the park's international image , but the choice can also 控ing certain disadvantages. mul組nationals.

τbe

cost Francs

per-.說lometer

of the

A在 bis 泌的timated at 1 紛紛凶on

55


CONCLUSIO飼

The balance sheet for Sophia Antipolis today must be considered positive. But its success remains to be confmned. To do this , a number of uncertainties need to be correc能d; the goal of increasing Sophia Antipolis' potential five-fold can only be realized 泌 this price. Towards this end, the 1990 Intergovernmental Regional Planning Committee ( CIAT) prop的ed a “Sophia Antipolis Ch紅ter" to be prepared and approved by all political and financial partners. The Charter will serve as a reference for the development project and will constitute a guar紹tee for the fmns present in the Park . This Charter wiI1 include: the nature of park ac位叫做s and sele叫ion criteria; development and "quality of life" criteria ( including the continuation of the ratio of f( 1.3) development, f(2 ,3) pro能cted green space); the level and the type of services to be guar削給edtothe 位rms and resident population on si蛤; a cornmon policy in terms of the park' s image , cornmunication and cultural exchanges; reinforcement and concretization of relationships between the institutions which ensure the cooperation between different partners at different levels; the overall development of the French Riviera. the 在cquisition and development policies of the zone itself, marketin學 andimage, the university and research. The ingredients for the success of scientific parks are the same across the globe; good c∞'peration between public and p討va給 partne路, the existence of a high-standard unìversity-紛紛喜rch facility , the quality of the site itself, transport and telecommunications infrastructure, appropriate financial tools and ventur心 capital in particular. Ho鈴g Kong already satisfies a large p轟rt of these conditions so 1 will end by wishing you the best success with your projec t.

隘些竺?一一… 56 ~


OF TECHNOLOGY IN SSIP

CO甚至頁ifERCIALIZATION

W如gYun-shi

Shènzhen Science & lndustry Park Corp. Shenzhen

ABSTRACT 1bis paper is intended to explore the new dimensions of the emerging m駐banisms of technology commerCÎalization throu名h an anatomy of the n:Iated activities of Shenzhen Science & Industry Park. The speaker will 駕結valuate the concept of technology transfer in terms of immediate m制act泌的 between research and commercializatio鈍, and will cast new 益。1 ∞ thes的mingly settled question. The subsequent presentation , ,極梭, serving as an applied version of the redefined concept, also c:xamines the Park' s dynamic roles in the vru;ous stages of the on-going F前酪S. At the end of the paper, some empirical suggestions are 興能sented for serious consideration.

剖TRODUCTION Wi也 the

growing impact 叫做hnology on business and increasing of research and development in 垃le SpeCtrum of corporate 絃tivities, consid討論le attention has been directed to the special W敬ninence

57


-

problems related 的 commerCÌalization of 包chnology. Based on my double experience as 認錯訂cher and business executive, 1 will address the topic in three dimensions: first.議 rethinking of the concept of technology transfer, secondly , a representation of the activities of Shenzhen Science & Industry Park , and thirdly , some empirical suggestions for quickening commerCÌalization of technology 像

訓班 CONCEPT

OF TECHNOLOGY

TRANSFER At the first sì怠尬, the concept of technology 紋這nsfer seems to be a meaningless. question.τo many people , the 侃pression 記chnology tr誰nsfer means a one-way flow of 蜘hnology from research institution and university labor喜tory through industrial engineerin鑫 grouptocom明 mercial marketplace. Some of them even define specific cutoff point wherer,肘。arch ends and operation begins. This might be all rightfor the convenience of academic research , but when it comes to corporate strategy and research commercializati恤, this could spell catastrophe. For the engineers of Shenzhen Science & Indus峙, Park (SSIP) and the researchers working with them, the tenn is far more than a lonely sequential process of no retum. It implies on-going efforts to maximize 由e exchange of infonnation ìn the dynamic process from the ìnitial idea fonnulation through prototype and product stages to final successful 給chnological diffusion with numerous feedback loops from later to earlier stages and continuous multi-level person- 妞-person relationships. Accordingly , there 紋e four milestones in the process of transfer activities: laboratory , pilot plant , manufacture and marketplace as indicated by the following diagram. It is hard to de紋路ine when and whe給 a transfer activity begins and ends. Within this framework , two m失jor players , the researcher and the Park , coordinate with each other to maximize information flow , to synergize rnarket dernand and technical potential, and therefore moving the transfer activity forward. With the researcher assuming the principal investigatio肘, the Park takes on different roles as the technology flows from one stage to another . 58

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務緩緩緩務侈傷多參

CO~在ERCIALIZATIO囂。F. TEC聽NOLOGY IN SSIP

L

G.ENERAL lNF ORMATlON A

Historical Perspective It has been six years since the shared vision and f:訂閱 sigh臼d悅ss of the Chinese Ac轟demy of Sciences (CAS) and the Shenzhen Municipal Govemment was visialized as the Shenzhen Science & Industry Park , the frrst high-tech d挖出ct in mainland China. The highest authority of the Park is the Bo轟rd of Management composed by influentialleaders from governme肘, industry and academia. Under the Board is the Shenzhen Science & Industry Park Corp. which is responsible for the development , cons佐uction 個d admini甜ation of the Park . According to the initial master development pl紹, the790刪acre Park is scheduled to be developed over 18 years. Curren t1 y , the Park is one-third developed with over 30 buildings in use and several others near co血pletion. Parcels of building site may be leased by developers for approved tenants or by the entering companies thernselv斜.Le泌的, which run for more than 40 years with multiple renewal options available , present a competitive edge over frrms outside of the Park. 可rhe to錯 investment amoun俗的 0.25 billion USD and more than 3血泊 people are employed by the Park firms .

B.

Physical and Professional Environment A superb environrnent and a stable and balanced infrastructure are already in place for technology-ba純d firms as evidenced by such factors as complete public facility , adequ轟金e supply of water and electricity , state-of.岫e-art tel部ommunicatio帥部 well as ready and quick access to the regional freight and transportation network. The highly mobile population as a result of a floodgate influx of inland university graduates renders the Park tenants an endless source of well educ鑫tedand highly skiU吋 workforce.

59

;;;;;晶晶這誼


It is a require訟ent that companies in the Park maintain an appropriate level of on-site tesearch and development work as a significant part of their activiti肘. In scr的ning tenants , the Park also takes into due consideration other factors such as irnport substitutionlexport prospect and po敏培訓 for positive interaction wÍth other tenants. An increasing number of technical companies have come to recognize the many advantages of loc錯嗎 in the Park and choose to settle there. Several world renowned compani的 such as Siemens , Wearnes Brothers and Pacific Dunlop etc. have estabHshed business in the Park. To date , over 50 technology峭 based enterprises have been set up in the Park in the following areas: new materials; microelectronics. photoelectronics engmeenng; bioengineering; precision ins住磁晦nt & machinery; finechemicalindustry;and

削d

information

oceanographic 能chnology.

Tenants of the Park find themselves among an elite group of companies and people with a balanced diversity of technical and business expe叫“ that are otherwise not available , and benefit much from the critical mass desirable for cross-fertilization of ideas .

C.

Incentives Theon“ going support from the Government is one of the key factors for the smooth development of the Park. The contributio泣。f the park site by the Gov開unent as a gift, and the continuous assistance in the form of human and physical resources have combine位給 enable the Park to pursue 轟 roll-over development on a self-sust在ining basis even during its infancy. Strategically located 扭曲e specìal zone , the Park not only enjoys the preferential treatrnent 始終nns of tax holìdays and other incentives generally applicable to other comp在nies. but

“函鼠晶晶晶晶 ω


義lso has its own envìable privìleges 泌 import and export facilities in addìtion to its access 鉛 the R&D matchìng grant from the Governmen t. The Park is one of the 27 high間tech d怨說cts officially 側dorsed by the State Counc波, which status promises to carry with it more aggressive favorable treatment over a much broader s仰C仗叫n.

D. Approaches of Research Commercialization As one of the mechanisms d的igned to accommodate R&D activities, especially those 血at involve immediate interaction wi血 research and university sectors, and to break the long standing deadlock of separation between academia and ind的旬, the Park has been playing pioneering roles in forging V轟rious R&D linkages through i的 various 矗ppròaches and broad spectrum of ac位vi泌的 in commercialization of technology. Considering the conditions available and with the overall strategy in mind , the Park has pursued five ways of research commercializ造tion: 1. 2. 3. 4. 5.

2.

Direct commercialization of domestic research re怨她; Joint R&D endeavours; Introduction of advanced foreign technolo.都i In酬house R&D efforts; 組d Development of appropriate technology

ROLES OF THE PARK lN COMMERCIA LlZAT/O N OF 7'ECHNOLOGY A.

Sponsor As mentioned above, we take technology transfer as a dynamic pr研部s from id閱 formulation to final 給chnological diffusion just like the growth of an infant into 扭扭hood. During the early days , what the infant (new idea) needs most is care (錢嗎eted research ) and nutrition (venture capital). Without the appropriate care and adequate nutrition, the chance of

61


函函函函晶晶 62

survival of the infant might be much lower. This is the sponsor, one of the dyn轟mic roles played by the Park. It takes adv轟ntage ofits businessedge in extensiveexposure to marketinforrnation and the expertise in market forecasting to bring promising ideas of str鑫tegic interest and the brightest mind of the community together with innov祕ve entrepreneurs under one roof, and 絡 部sure their healthy movement f.仰ward through varlous 貨ansfer points with input of reasonable venture capital. The successful story of the Park' s computer lab prese泌sagood example. In 1987 , Mr. Chu Bongfl冊, a computer expert from Taiwan and the inventor ofthe Can回 ieChine紡 coding system, came for patronage to the P紋k with several embryonic research p泌的 to build a unique package of Chinese comp訴er technologies. We compared the proposed plan with the major Chinese co泌P紛紛r technologies now in use in mainland China and found that the package could present a competitive 叫ge ovet the prevailing 伽hnologies. A follow酬up market research demonstrated a strong poten位al in both intemational and dom的tic marketplace. With the top managemen t' s gc• ahead sìgn祉, the Park. provid吋喲.6 million venture capital and related equipment to the projec t. After a short time of cooperation, the Lab developed the Complete Chinese Character Generation & Output Technology and the Integrated Software System, both of which had paω叫 the appraisal of the CAS. The former marks the en位流nce of the world's most ancient culture into the computer powered information er轟 and the latter incorporates the major functions of office automation into one software package.

B.

Incubator When a research is completed. the technology grown from new idea in laboratory will move to the next stage: pilot plant This is a decisìve point in technology transfer process. Starting young high耐心h companies is often a lonely and challenging experience. which 恕的pecially true of the comp松 ies originated from research establishment and


university sector because they are much removed from the and have neither the orientation nor the resourc割的 undertake comprehensive market activities. commercial 誼通rketplace,

The Park's Incubation Center h紛加鉛 set up to house small technology-based start-ups and experimental projects of established firr盟, and to help individual inve鈍。r get their products off the ground and into the marl正的place. It provides the much needed technical 個d business expertise as well as office facilities, administrative servÌces and financial a的istance at low cost, forfledgling operations that show promise of growing into profitable high-記ch companies. This reduces the company's expenditures for peripheral items and allows it to commit its limited resources to the core task of product development,“1US going a long way to meeting the technology tr削sfern偶dsand thes給rt-up problems, and establishing a unique environment which helps new business start and grow. At present, the Incubation Center is home to more than a dozen start-u抖, some of which have outgrown the Center and prospered 路pidly. The Park has also allot毛ed its resources for 11甜的elopment of new 終chnology and produc t. One of our 揣在nd investigations indicates that a lot of research results generated by some refined instit臨s slept for years in prototype f,側n in laboratory due to problems related to product design, packaging or dìe & mold 給chnology. To tackle the bottleneck, a “ synergistic 紛chnology use" approach is r,呵uir吋 to bridge the inforrnation and communication gaps between different specialists and separate specialized areas of knowledge. The Park ìs now makìng arrangement to enter into long 制m cooperation with 泌的。 institutes to change this shameful situation. This will be part of the Park's next major undertakings等

C.

Inte椒'Ce

S絨ctly speaking , it is only half way to the manhood of market acceptance when the ìnfant outgrows the 嚀。啦。r and incubator. Perhaps he has already had the m揖kings of success,

。3


聶聶聶函鼠函品 64

but he has to learn and practise to survive the rigors and hardships of life. We call 由is stage “ interface" in the 能chnology 控ansferproc的s because this is the very place where a floodgate of infonnation from either side of research and industry sectors converge and where the technology achieves its realization . The Park has employed two approaches to accomplish this role: 1.

build the Park into a strategic window ofthe CAS overlooking the coastal and intemational market to enhance inforrnation exchange; 2. quicken commercialization of the 畫意search output of the . CAS and other research establishment in the favorable environment of the s酹cial economic zone. As a strategic window. the Park has developed a variety of mechanisms to enhance the dialogue between the CAS researchers and indus吋 sectors and provide varied perspectives on the source of new technology. including technical seminars. forums & worksho阱,伊rsonne1 exchange 閥d support. dissemination of 給chnical report. joint appraisal conference. v紅心 。那 technical 路hibitions and fa郎,義nd other exchange of infonnation about c∞'peration opportunity and market trend. Some of these disseminating activities may not be instan t1y effective. but they promise to bridge the gap and therefore could have f:缸-reaching consequences in the long tenn. The Park's policy is to pursue strategic social benefits while m盈intainin忽略gressive business op惚'ation by tr組slating research innovations into marketable products as quickly as possible. To that end. the Park. apart from gener這ting its own inventions by the in-house rese位cher囂, has alsoa技ached great importance to looking outward for id純s beyond the corporate wall and utilizing external sources oftechnology. Curren t1 y. the Park has established a wide s阱ctrum of close relationships with the CAS. other research establishment and some science & technology universities across the nation. It also entered into


long term cooperation with research facilities of companies from the U. S. , Japan , Hong Kong, Australia, Singapore, Gerω many and Austria etc.. In doing so , the Park provides the rnissing link in technology transfer process by serving as a direct comrnercialization base andplays an important role in channel愉 ling R&D results into various applications. A relevant ex滋滋ple is Changyuan Applied Chernistry Ltd. , a joint venture hetween the Park and Changchun Applied Chemistry Ins紋tute(CACI)oftheCAS. It 轟dopts the Co 60 irradiation techniques to produce cable 鑫ccessories with radiation li能ed heat shrinkable rnaterial辜. On the basis of CACI research, the Company successfully improved the technology in the course of production. The products were awarded theimport subs討tu的on status and ra叫那 product of excellence by the Guangdong 肘。.vincial Governmen t. The Company recovered the in姆拉 investment in less than one year and its profit rate reached over 50% last year.

D. Radiator When the child has grown up , survival is not the only business. To gain recognition and respect, he should sh叫 warmth and light to the society. The Park' s devoted endeavours as spons肘, incubator and interface during the previous st悍的 have laid a solid foundation fc賞梅 radia位ng role to the improvem如t of the indu線主義i 館臨紹給 of the special zone and penetration of intemational and do您的tic market Shenzhen is the fastest growing s阱cial econornic zone ín China. But at present, labor intensive processing industry is stiU dorninating in the local industrial structure. To reverse this situation, the local govemment was deterrnined to develop high倆tech indus甜的 to make science and technology a rnajor value added factor in its products and to invigorate the development of the special zone. The establishment of the Park coincìded with this critical juncture and it involved heavily in preparing the long term science and technology development program , and was slated to house the strategic new

65 函函區區晶晶


materials and bioengineering centers of excellence funded by the Government . The significant con的bution of the Park may be demonstrated by, among other things, the following examples: Among the 8 products of the sp缸i叫 zone which are rated by the StatβPlanning Commission as 1989 major national new products for 出al production , four were developed by the Park. 2. Two projects of the Park were listβd as major items in the 7th National 5 Year Plan for development of new technology. 3. . Four other high -tech projects of the Park were incorpora記d i泊 n the national 4. Since its establishment , the Park has successfully intI吋uced over 10 technologies from foreign coun崗的 and developed or improved more than 80 products . 1.

While continuing its efforts on R&D activities , the Park has begun to edge into national and intemational marke t. Take Shenzhen Jinke Special Materials Ltd. for example. The Company was set up in 1987 with a total investrnent of USD130,α)(). It joined forces with the Institute of Metal Research of the CAS in developing aluminium alloy additive, refiner of aluminium alloy , and PTC thermister , all of which had been previously imported from the West Europe and some other coun固的 N ow after a series of promotion and technical innovation , the Company has become a dominant supplier in domestic market and part of the produ的 have been exported to foreign coun圓的. The tumover reached USD 1.2 million in 199 1. As the Company grows in international stature , Foseco International Ltd. ( England ), one of its previous tough competitors , has come back to the Company for technology license and marketing cooperation .

66


CONCLUSION

1. APPROXIMITY TO RESEARCH UNNERSITY The establishment of the Park in Shenzhen in the first place seemed to many people to be against the conventional wisdom about the indispensable approximity to 轟 science & technology universi哼, and continues to defy the law. While the 位al and error of the past years is counted sornething like expensi ve H翎ition fees", the successful story of the Park demonstrates once again the truism that every road leads to Rome. The combination of the Park' s close relationship with the CAS as weU as many other research units and its strategic geographic positio紋 defuses the otherwise explosive shortcoming .

2

M..'ANAGEMENT

PERSONNEL

Failure and success are the two sides of the coin. L∞king in retrospect, we find that a high percentage of failures are ass∞iated withm組agement instead of technology. Many of our engineers are 侃perts in their s仰自cial field, but they are just like fish out of water when it cornes to managernent.有is is perhaps the most spread epidemic in enterprises 泌 China where the state ownership dominates and businesseducation drags behind. How to cash in on the quality business 拉法ining programs ìn the Westem countries to bridge the conspicuous gap is a very important question called 忌。 be addressed .

3. V'ENTURE CAPITAL While the U.S. and some other develo伊d co叫別的 have been involved in the venture capital indus甘y for some 40 years, it is hard to say that venture capi tal industry exists in China at all. It is true that some enterprises have applied venture investment principles forsome 甜食峙, but the professional venture capital pool of China is rather ir斜斜ificant at present. This is a strong handicap to technology tr恆星fer. While it is more a wi諒自an a reality for the

67


state to initia鈴 in the immedi泌efuωre an adequate venture capital for the enonnous development facíng the country , we hope the state to institute rules 鶴d regulations to promote the growth of venture capi叫 industry in the private sector . 4.

Q'ORP'ORATE STRATEGY Consideringωsignificance

to theω中orate future assurance , technology transfer should be a long tenn commitrnent rather than a sporadic and isolated ∞currence. It is 側sy to mak:e a profit in a short time by gu錯殺g the co中orate future , but only tho鉛 future-oriented enterprises with a sound technology transfer strategy are well positioned to strengthen its institutional and technological capacíty to meet future opportunity and growth. 5.

R'OLE OF THE GOVERNMENT

The experience curve of most developed cou拉伯的 demonstra島的 that goverrunent has a big role to play in technology transfer which is especially true of China as a socialist country of planned economy. This should not be limited to the relatively passive onl∞屆時 role as conduct regulat帥, but should include ac位ve roles such as promoter and participant. And this role , like that of the Park , is dynamic throughout the technology transfer pr∞ess 轟s far back as when ideas are generated and selec給d for development and well into the future when strategies are prepared for market penetration and further innovation.

片“


TECHNOLOGY TRANSFEl畫圈 A KEY ELEMENT IN SCIENCE PARKS Ian G. Dalton Heriot-Watt University Research Park Edinburgh

ABSTRACT Modern indus的 absolutely depends upon ready access to a wide range of technology for its continuous success. Th肘, for many companies , there is an ever incr磁sing need to access other sources of special 侃pertise to augment in-house company skills in an extensive way. This pr恆的$泌 known as technology transfer (T .T.). In this paper , the author will consider in detail the various mechanisms as well as the application of technology transfer. 諦。$戶泌的 ve ofthe r磁chanism employed, the

need for 終chnology trans哪

兒ris likely tocontinue to grow rapidly , since thereasons forits existence,

competitive pressure and rate of scientific progress , are unlikely to abate. There is now substantial evidence to 的ow that Science Parks can play an important p訓 in this process by acting as ca級lysts to enable and encourage the transfer of technology to industrial compar泌的 to take place.

69


It-

INTRODUCTION Modern industry absolutely depend草坪。n ready access to a wide range of technology for its continued success. It is not economically feasible to retain all such resou訟的 within each company even if the necessary, qualified personnel 紅e available. This difficulty is further compounded by the fact that 也e mixture of disciplines and knowledge needed for the future development of products or processes is continually changing with 臨惚. Thus , there is an ever increasing need 給給cess other sources of special experti紹 給誰ugment in-house company skills in a quite detailed and extensive way. This process has come to be known as technology transfer 付.T.) and one of the most able and appropriate sources of T.T. are the Higher Educational Institutions (1直到 s) and other centres of research . 抖的sure

of competition in the market刪place and speed of scientific progress requires that there be close co-operation between the functions of research and exploitation , hence the ne叫 for Technology Transfer. This need is felt by all industrl訓 companies to a greater or lesser i 色e鈍 , however, amon鑫st the small and mediu姐 exte抵 The need is gr悅 告Îzed ente叩巾的 (SME給 for obvious reaso的. In particular, those SMEs which are sdence-based. innovative companies may be considered to have need of continuous technology transfer, and it is to meet this special requirement that the concept of science parks , based upon suitable sources of technology , have been developed . τh帥,

technology transfer and science parks may be regarded as but two faces 01 the same coin .

DEFINITIONS At this point , it may be useful to attempt the definition of the terms “ Science Park" and tas絃 丸, and a science park may be defined as a property k the easier 泌 based initiative which :

70


has formal and operational links with a University or other Higher Educational Institution or major centre of research; is designed to encourage the formation and growth of knowledge based businesses and other organisations normally resident on site; has a management function which is actively engaged in the transfer of technology and business skills to the organisations on site .

τbe

term Science Park may include initiatives called by other names as Research Park , Innovation Centre , High Technology Development, etc. , where they meet the essential criteria set out above: 個ch

Technology Transfer is much more difficult to define satisfactori旬, aI曲ough almost eve可one appears to know instinctively what is meant by its use. A working definition rnight be as follows. Technology Transfer is the development of research results into forms suitable for industrial use and the transrnission of that knowledge into αlIIlPanies which have need of it . In practical terms , T.T. manifests itself either in the relocation of an iDdividual possessed of some particular expertise on a tempor紅y (consultant) or a permanent (employment) basis , or through the

licensing of a developed product or process. In either case ,扭扭曲e development of “ know how" , usually from an acadernic or research covironme肘, into a marketable item for exploitation by an industrial 01' commercial company. Although it need not necessarily be so restricted , it is assumed that 曲e focus is upon science or engineering based products or processes for the p凹}>oses of this discussion .

71


IDEAS TRANSFER OR TRANSFER?

TECHNOLOGY

The relationship between an extemal res侃侃 h group ( s哼 in a University) and their peers in a large and sophisticated company may be considered to be a special ca紛. Here , the enunciation of a concept 血ay be sufficient since the capacity 都 well as the capability of those at the receiving end is such that no further a泌is紛紛ce is required from the originators during the actual development process. This might be described convenien tI y as "ideas transfer". It is comparatively rare , and it will 泣。t be considered further in this discussion. In the majority of cases fì前ther help is needed , and this technical bridge needs to be of a scale inversely proportional to the quality and quanti句, of expe的se available at the receiving end. This may be achieved by the recruitment to the company's s紛ff of a person (or persons) possessed of particular knowledge or experti點 Alternatively , and more frequently , this is accomplished by a relatiònship of some form between the source(s) of the relevant know-how and the receiving group. This relationship may take several different forms but these all tend to f,闊別, ultimately , upon the exploitation of a product or pr∞ess by the receiving company. It can be seen , therefore , that “technology transfer" and “ product (or process) development" are often very closely associated if not indeed almost synonymous terms. Perhaps the one distinguishing feature is that technology transfer also involves the trainÎng of the recipient's personnel . Product development involves not only the desi伊 of an item , but also the means and method of its production; the locating and organising of specialist sub-contractors; the design of tooling (and control information in the case of elements of automated manufacture); the desig錄。ftest rigs 部d procedures; and the compiling of dOCUI給你峙 tion. It follows , therefore , that “記chnology transfer" involves at le泌t one, and probably several orders of magnitude more effort than "ide能 transfer". It also requires a quite different mechanìsm for its achiev心 ment. The personnel involved will be more numerous , and will be poss部sed of different skills and different attitudes of mind to those of the original researchers. The costs involved , and their recovery , will be altogether 蠶 more serious consideration in the case of T.T. 蚱"…………… 72


TECHNOLOGY

TRANSFEl主 MECHANISMS

The most efficient method of transferring technology is to 0:ωve tbc person(s) possessing the "know how" , a familiar process known 臨 “ recruitment" if achieved at a per在onallevel, or “company 都q凶siti妞" if the whole CQ中orate s虹ucture is involved. Universitie趴 polyt蛇hnics. colleges , and research centres are particularly fertile sources of supply of expert personnel, either on a long term (employment) or short tenn ( secondment) basis. (Such mobility 器Iso has the consequential benefit of allowing the introduction of “ new blood" into the acad紹過C 街叫 終結arch environment through the replacement of personnel moving to industry.) A special case of this movement of per在onnel is the "spin off' company , of course. It can be argued that science parks associated with Universities and centres of research have stimula飽d this element of business creation by making 叫“白, both psychologically and in practical t閉路, the transition from one form of activity to ano出er for the persons concemed , whilst providing the most effective means of retaining the contacts and access to fonner colleagues and their research work which is important for the future. A second method of acquiring the requir,叫 "know how" is by training ( if the need is to know “ how" to undertake the necessary development in-house) , or by consultancy ( if it is only necessary to know the answer to a particular problem). Both 街老 long established 組d 伽niliar ac如泌的 but it is worth noting that trainî略 has developed dr滋natically in recent years 如d Can be made available în a 有IIide variety of forn豆豆, which can be rapidly 訟ilored to suit individual requirements in a most flexible way. The use of audio tapes ( for play back in car cassette radios whilst commuting , for example) , video tapes , and other forms of distance learning ( such as computer based learning ) can greatly enhance the possibilities for improving staff skills. A company which is a tenant of a science park is in a particularly favourable position , of course, since staff can readily attend seminar草棚d tutorials to augment their knowledge. Although the media employed may be nove l, these are essentially familiar mechanisms .

73


The next method is newer in

coce阱,

however , and might be called

“ co-operative assistance" in which the technical resources of Universities or centres of research can contribute personnel to a project team in a company in order to develop a product or process , whilst at the same time expanding the company' s staff expertise through the provision of thorough explanations of the new knowledge being supplied. Thìs may be thought of as “ on site tutorials" or 叮ntensive mature 轟pprenticeships". In either case, the benefits to recipient comp星nies have been amply demonstrated and are well worth considering as 揖 most cost effective means of raising the capability of a company ,建nd the capacity to undertake development work at particular points in 必me. Heriot-Watt.University addressed this aspect of T.T.

峙的tablishing

“ Technology Transfer Institu間" (TTIs) to meet this n研d. EachT訓, and there are now some half.偏心dozen at Heriot-Watt, is established in a particular sector of technology and operates on normal business lines , each with its own management , and funded by an initial investrnent made from the University's own private resources. Each TTI is required to be financially self-supporting by its operations , and has its own staff recruited from the open market-place to undertake the co蛇ac心 with indus吋﹒ The objectives of the TTIs are to be aware of new developments in their subject area; to interpret the significance of these new developments and attempt to foresee their practical application in industry; 如 develop such applications in the form of products or processes; and to transfer knowledge and designs to indus對al companies on a fee-earning basis . The first of these TTIs h轟s now 出en in ve可 succ的sful operation for some twenty three years , has clearly fulfilled a demand , and as such has provided a model for all those which have followed. One of the advantages of the TTI concept is 由前, in some instances , the TTI can enter into a risk and reward sharing agreement with a company regarding a new developmen t. Irrespective of the form of agreement , however, it is implicit in the operation of such a full-time T.T. operation that a normal rate of return will have to be provided to the group , upon satisfactory completion of obligatíons both in terms of quality and delivery dates. The lesson is clear , therefore.

74


T.T. c鑫爽的t be obtaíned free of charge but ít can be a constantly renewable resource for a company; it 'can be controlled; and ít can bring disproportionately high levels of effort to bear at critical tirnes for a company's competitive 草綠nce.

THE APPLICATIO到 TRANSFER

OF

TE口到OLOGY

So far , it has been assumed that the company ís the recípient of the but it may also be the ca絡 (and these two conditions are oot mutually exclusive) that the company is in the position to 誼通nsfer its own technology by the sale of its “ know how" as a product ìn íts own righ t. The licensing of product or process designs has e在必 ted for many years 揖nd most of the large , intern 是tiona 1 companies engage in it. This mechanism does have ìts problems for such organisations , however, since invariably the licens帥 is an equivalent, íntern滋ional company and could be a competitor unless careful demarcations are agreed , usually on a geo忍raphical but sometimes on an applications sector basis. 蜘hnology,

The sm車11 and medium sized enterpri 將s (SMEs) which are characteristic of Science Parks are in a different and rather more favourable position. Their license "p紅tners" in another geographic area (country) are Iikely to be of comp:器rable size and therefore there is li ttle real d揖nger of their being able to push the lícensor out of his own domestic marke t. On the contrary , such a licensee may be the only possibility for an SME to gain access to a foreign market and thus obtain a wider retum from his developments and expe而se. So, “licensing out" is growing in impoπance to innovative SMEs, and “緝犯hnology broking" is rapidly 能c。如ing a significant new profession , especially in Europe. Universities , research centres ,倒d. science parks are often amongst the most well established rnembers of this profession and the 州work of intemational contacts thus formed can be of major 船sist紛ce to SMEs searchin學 for credible licensees for their desig啦, ln this context, the establishment and growth of T益, the European Association for the Transfer of Technology , Innovation and 7S


Information is indicative of the sca1e of these activiti紹, now having some 5∞ members within this technology brokers' network. It is a1 so interesting to note th鑫t there is a rapidly growing consensus opinion that Science Parks are ideal nodes on an international technology brokerage network . ,

The coroll位"y to licensing out is “ licensing in'\One of the problems facing SMEs is the need to be innovative in order to secure a position in the market-place. They cannot directly challenge the large co紡pani峙的血 their 的tablished products. At the s紅ne time , the r揖te of obsolescence of products is increasing steadily , as much by virtue of the rapid replacement of components by new and more capable or cost effective units ,農s by competition from another company. τhe 追 e 抬 1e 翎 時 n gt油 h qf the market 伊 p r吋u 恥 ct 泌 i s sh 抬 or 拇終椒枷 彷z 2錢 絨iI嗯 E憑 g , therefore. Of greater significance is 恥 fact that the ratio of development to exploitation time is changing dramatically. Whilst in the case of a traditional engìneering product such as a pump , the ratio may have been 1:7 (or better) , with modem(s哼, electronics based) products the ratio may be 1.5: 1. In other words the exploitation time for Product A is shor倫 than thedevelopment timeof 肘。duct B and unless the company is capable of developing more than one product simultaneously there will be a loss of continuity in manufacture.τhe consequences of such a situation upon cash flows can hardly be contemplated with equanimity. One solution is to license suitablepr吋ucts from elsewhere to intersperse with the in-house desígns for manufacture and sa1e , without incurring the development period and the con臨quentia1 allocation of effort and expense. (See Diagram 1). The specia1 case of T.T. is the “ spin off' company , where a researcher forms his own enterprise to exploit his knowledge and/or research resul恥 In genera1, the present climate is very favourable for this type of initiative. It is genera11y accepted that there is a need to obtain a gr叫做 degree of exploitation from resear叫1 and , in the case of HEIs , to do so is much more academically acceptable now than rnight have been the case in previous years. Furthermo銬, the attitude of bodíes which fund acadernic research is now , in genera1, consíderably more relaxed with regard to ownership of the results , and thís approach is often adopted by the HEIs also ín the spirít of preferring to see new developments go forward in the general national interest , rather 市晶晶=晶晶品 76


than frustrate 給你 initiatives through too narrow an interpretation of title to intellectual property rights . Th us , the "spin off' company is becorning a familiar sight , often based

on a Science Park associated with the source Instituti冊, and a measurable body of ex伊拉ence is now building up regarding these companies. One of the interesting lessons which has been learn叫, and which has par技cular relevance to T.T. , is that the more successful examples are often those in which the acadernic ent記preneur(s) do not m綠e a complete break with the University but arrange in搬ad for a part-血ne involvement with their company and their parent Institution. There are many favourable as抖目前s to this arrangement but, in this context, the main consideration is the almost perfect nature of the continuing link between the acadernic research environment and the company's development of products or pr凹的ses. (The apparently unfavourable aspect of such an 紅Tangement, namely the lack of full commitment by the 侃trepreneur to his company. is usually more than compensated for by the resultant necessity of employing , from the beginni嗯, a professionalmanager,的 relieve the innovator of many of the routine tasks which he may well be ill-eq均ped tode叫 with in 細lS of experience 組d temperament.) The “ spin off' co磁pa呵, almost by implica絞。訟, usually enjoys one more initial advanta阱, namely the development of i鉛 first product at least may have been substantially completed before the formation of the company. Thereafter the problem is the same for this 品銷y other company and , once formed , the “spi心。ff' company 紛kes its place in that large group of enterprises comprising the whole spec住um of companies from small to large , simple to sophisticated , young to mature . IIrespective of the mechanism employed , the n間d for technology is likely to continue to grow rapidly , since the reasons for Îts existence , competitive pressure and rate of scientific progr悠悠. are unlikely to abate. As in many other instances , the question is simply how skillfully can we manage this essential collaboration? There is now substantial evidence to show that Science Parks can play an important part in this process by acti蹲在s ca切lysts to enable and encourage the transfer of technology to industrial companies to take place. 前剎時fer

77


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INVESTMENT FOR THE FUTURE: SCIENCE PARK IN HONG KONG ThomasTang Universal Code Technology Ltd. Hong Kong

ABSTJ這ACT

A science park has a valuable function to serve ìn an industrialised economy. Notable worldwide examples are scanned and their common features and advantages are identified. The way to make ìt work for Hong Kong is discuss叫.

INTRODUCTION W.hen properly set up and developed. science parks can become S缸ategic forces for the cou說話鈴。r regions they have been designed to serve. Hong Kong cannot afford to ignore the potential opportuniti制 whìch science parks are known to offer to the more favourable development of technology - inte那ive economies. Despite advocating voices over the years in ìndustrial and other círcles. the Government has been slow to ac t. While there are many useful experiences available worldwide 如d nearby , we have apparently faìIed to learn effectively from them. One month

79 函函面函屆“


ago , Hong Kon忍 legislators rejec紛d a HK$8 million 終quest for a consultancy study on establishing a science park 泌 Hong Kong. (1) The legislator told the Hong Kong officials 給 first determine whether there was a "r叫1" need before spending money on a feasibility plan‘ 1n the following , 1 will tty to present my view as an ind\泌的al攏。n the n轟ture of and need for science parks. 1 will also outline some of the benefits that 1 hope to derive from setting up a science park as seen from Hong Kong , along with some concerns and challeng鴨蛋

CATALYTIC POWEl這 OF SCIE其CE PARKS AND SUCCESSFUL CASES One of the believed benefits is that a science park in a countty will s位mulate the growth of its economy. 1t will help to boos t: -

Higher export earnings Technologicalleadership Employment Practical applications of university projects

Has this concept been successful? Here are severalearlier successful models , mostly American , that were highly touted and followed worldwide . Route 28 complex ,踐的ton/New Eflil制 d area e.g. DEC , Wang , Prime , Lotus , General Datacom Research Triangle Park , North Carolina Silicon Valley , Northern California The heart of the ∞mputer industty , located approxirnately 40 miles from San Franci鈴o. 1ust 20 years ago , this was all farmland. Today , it consists of some of the world's largest hígh酬 tech companies.

(1) 兩屆函孟晶函 80

Ed.I紛紛:thesumwas 咚司pcoved sever祖1

weeks later.


Examples much closer to our Asian community include: L

[n Japan - Tsukuba Science City 70 compani帥, 9 research laboratories and institutes and , a research staff of 107 ,故刃,

2.

[n Taiwan “ HSIP 4 square kilometer area , 2 m失jor universities and the Taiwanese Government ITRI (Indus甘ial Technology Research Insti紛紛), 120 companies.

3.

ln South Korea 勵 Taedok Science Town 28 square kilometer area with: 3 prìvate research centers , 3 universi紋路, planned 50,似沁 r的earchers in 55 institutes.

4.

In China 哺

5.

Another Island

The

Shenzhen Science and Indus絃y Park

ex街時,}e

in Japan is

the 給chnopolis

project in Kyushu

Science parks are sproutìng up throughout Asia and for that matter the world. The rationale is simple: it works. It worked in U.S. , it ìs workìng allov,紋 Asia, and it sure is going to work for Hong Kong , if we do it right.

WHAT SCIENCE PARKS BRING TO INDUSTRY-BASED ECONOMIES ? Therearem轟ny common features and obvious advantages of the succ的s­ ful science parks around the world and there are some of them which 紅e cè訛ainly applicable to Hong Kong:

1.

1'ncubators for Æ仰 Technolof!ies For mosthigh.但ch start-upcompanies , thekey is survival. The usual odds for a sωrt-up company are 5% - 10% in the high-tech market. However , the U .S. experience is that incubated companies' ch鑫nces of survival are 鑫bout 80%.

81

品函函函函


2.

Market Intellipence Sc ience park wìll place the R&D centers closer to potential suppliers , customers and even competitors. Suppliers , customers and competitors are the most important sources of market intelligence.

3.

Attraction of BusÎness Partners and ODDortunities Being close to their sourc酌,胎chnologies transfer and complimen闖 tary technologies partnerships will be logical and handy. High visibilities on success stories will draw buyers and investors.

4.

F'i nancial Bene仿ts Matching grants , tax exemption schemes , venture fund 路d other financial incentives will be strong reasons for industrialist to move into science parks.

TaDDinp

ofAcademia Resources

The acadernia has some of the most highly qualified experts in many professions. Pu tting their talents to work in industrial researches will be a si皂nificant enhancement to our indus緝的, 6.

Retention of Kev Research Talents Science parks around the world all seem to have these in comrnon: nice working environment, high pay and prestige. It helps.

7.

Reverse Brain Drain Hong Kong's ernigrants , PRC overseas students , and even foreiεn nationals for that matter, who find their skills and aspirations could be better served in Hong Kong , will be Iured to come back.

82


HOW TO 姐AKE SCIENCE PARK WORK FOR HONG KONG? Wh at are some of the challenges we c紹 foreseefor the science park 泊 Hong Kong? The key lies in how it is going to help Ùle local índus出的; how it will help to better utilize our technical 侃pe雌路 in 創lf academia; how it will help to upgrade our 能chnological position; bow it will help to enhance our exports ? There are some decisions we have to make:

1.

M',arket Driven or Technolopv Driven

Stress on any one may mean having Ùle right product Ùle wrong time or wrong product Ùle right 也帥. A delicate balance raÙler ùl組 a choice is needed . 2.

r.ec妙的lop哲 Svecializa1Ìon

Niches are dictated by ourresource丸 but which one should we pick? Biotech or telecom? Mold and die or noteb∞k computers? Final 'products or key components? 3.

LinkinJ! R<.藍D Marketin f!

We want to develop some Ùl ing we can sell. Concurrent engineering 直nd market information is a must leading into CTh哇, central databases , onto worldwide networks . 4.

Einanciallncentives

Criteria foreligibilìty must beclear and publicìs錯,們ioriti的 should be categorised by technologi的. lt is irnportant to recognise the lead-time for Ùle approval process.

5. 1'imin f! for Launch Hong Kong is lagging

i必 neighboring

substance. 忌's time 的 catch

counterparts in scale and up, even for survival.

的函晶晶高晶晶


6.

Role Identification of Technolm!ie當 lnstitutes The distinguishing roles of industrial ce紛紛路, the Hong Kong Productivity Council , Technology Centers , Science Parks and lndus肘al Estates should be brought ou t.

7.

M'e if!hborin f! Science Parks We have to clarify our attitude towards other science parks such as the one at Shenzhen. ls it one for collaboration or compe惱。經 ?Do we want to avoid duplications ?

CONCLUSION 1 滋主lsure many ofthesequestions have been addressedelsewhere in other

similar program趴 but this .time we have to look at these in the current Hong Kong context . To sum up , 1 believe that the Hong Kong industries of the 始's is curren t1 y at a critical stage. We are facing strong worldwide competition from not just the cost but al叩 in the quality and technology fronts . While pursuing cheaper labor cost in neighboring coun泊的 seems 鉛 be an effective 紛紛rim approach , the long terrn solution to the well being of ourindus肘。s lies 泌 how we fare in this batt1e of quality and technology leaderships. The science park concept as a technology incubator 在ndd秘eminatoris a world proven one , but Ho時 Kong is lagging behind when compared to ourco部記中泌的 in Asia. We must move along. 1 am glad that the Hong Kong Government is alloc拉姆 significant 給sources 怕也e traini啥。f science researchers and technologists , establishing world claωresearch facìlities in our academia , technology center丸 andeve訟 in the form of indus釘ial research gr臨諮詢 the hopeof improving ourtechnological standings in the region.

*r-

84


Wùl we succeed? 1 think we will if we can bring the researchers and dJe marketers together, bring the indus剖es and the academia together. bring the private sector and the government together, and with close u或laboration with our neighboring countrl肘, we will catch up with ourp紅tners in Asia. Wen臨d people , we need money , we need to create therightenvironmer哎, toge血er, we need to collaborate and learn from our forerunners in the neighboring co滋滋滋的, and we need some success 總mes. With the effective leadership from our Govemment, 1 believe 扭曲19 Kong will remain as we always are an active member of the world' s economy 泌 constant pl仔細it of technological ímprovements.

we need to work

85

函孟晶函函兩


多傷緩緩務傷侈緩緩

ROUND TABLE DISCUSSION Moder當tors:

Y.K.F側

YorkLiao S.K. Tso Society of Hong Kong Scholars HongKong

Prof.

F,α n

Yiu-kwan

When Dr. Mark Money mentioned that it Îs important to have

“ deep pocket" , whose “ pocket" does it mean? The Government's p∞k例,

the University's p∞ket or the participating compani郎, pocket? What 轟bout the venture capitalists? To what extent can we use the venture capitalists ?

D仇 MarkMoney

1 c鑫.n relate the experience that 1 have had , with full awareness that there are some other ways of doing it. In Utal豆, we have acquired land from the Federal Goveriunen t. We made applications for5恥+- acres that was contiguous to the University of U給. Itwas a military base before and no longer needed because that area has grown up with a dense residenti直1 population. We received that land at two dollars and fifty cents per acre which was a nice subsidy from the Governmen t. We did not have great resources but with the land , we had to put in the infrastructure which 晶晶晶晶晶晶制


物物翩翩

was not within the University's budget. We told the community in the Salt Lake City that we would provide the leadership and the management team to market and manage the Park. .We said if you put in the utilities ( roadways , sewage ), we would decl喜re this land as taxable. We got the provision from the legìslature that if Salt Lake Cìty provìded the money for the infrastructu間, they would receive a contribution in lieu of taxes of the sameamount. So , they put in about 850,!α沁 U.S. doUars and that was 25 years ago. Then we proc的ded to develop the Park. We did not need to have a deep pocket because we did have the support of the City and the support of the Univer位紗, But in Texas they had a deep pocket. They had a sizeable amount of permanent university fund which was the interests on the endowment of their university lands. 12 million dollars were set aside to invest in the infrastructure and the initial building of the Texas A&M University I主esearch Park. So their deep pocket came from 由e University. [ would think that there were a number of other ways of financin悉. [n Uni祕 Sta棚, we even have private development of research parks. They identify themselves with the Uni versity because they are near a University. There is no govemment involvemen t. They are more of a business-like venture and they have wider ways to get financi峰,

Dr. lan Dallon

Our circumstances are different to the one that Dr. Mark Money described. In our particular case, we had no partners 組d no social funds other than our own. We had no altemative but to develop the Park through commercial borrowings with the best ra毛e we could get and then repay the capital and the Ìnterests. It has both advantages and disadvantages. The advantages are you don't have to discuss what you are doin怠 with anyone. You can make mistakes and suffer the consequence丸 but it can speed up the process. But on the other hand , itrequires several other things of you.

87


Y ou needs to have courage if you want to earn money in the long run and you need to make a ve可 ve可 good plan. Irrespective of the quality of the pl徊, you must realize 出at plan. If you fail to realize it and if it gets seriously wrong , the consequence could possibly crush the University. Another obvious disadvantage is 出at whatever happens , you got to keep a cash flow and balance. Even when there are ve可 tempting circumstances by which you could borrow some more money and can get some other companies on site , you have to resist 出e temptations. The progress will be ve可 slow. posi位on of suffering 出e frustration of losing which we could otherwise take to the Park because we could not provide the space fastenough with the toppling cash flow. I t' s rather depressing , at 位mes.

We have been in a sever叫 companies

Finally , it belongs to the University and becomes a real asset of it. The University has not put anything but lends its name and reputation. The interaction may have some value , from time to tirne. Ours is not a huge park but at present we're making profit 扭曲e operating sense , though not in the net sense yet because we keep reinvesting. Now we have an appreciating asse t. We 昀 todevelop at each stage about 出e same absolute size. When one's credibility climbs , it gets easier and faster to pay the deb t. So , the risks are dirninishing at the same time. So , you have to choose which alternative most appeals to you. If you' re on your own , you can make your own decision , and hold your own objectives to and will not be distorted in any way by someone else's desire. On the other hand , even when things are going well , you have to accept 出at you sometimes cannot move as fast as you would like to. There is a worrying peri吋. But when 1 s自由e situation of some of my colleagues in other locations that have several partners with different objectiv間, they have , besides more land , nothing but lot of complications and obligations. In the long run , I think whatever the drawbacks are , it works well for us. We have an asset which is ours. We don't have to waste time resolving questions with people wi出 different objectives and wills.

_____ 88


務務務修傷務務緩緩變

Dr. S.K. Tso 1know thatsome Univers蟬的 in the Uni紛d K.i ngdom and elsewhe鈴 are good at making money or ma垣ng use of the money that they' ve goL But 泌 Hong Kong, the sit紋路onl∞b different. Furthetmore. the Universities and Poly包chnics do not have their own land. The Indus虹y Department could look into the S泌gapore Science Park model,學nd 1 hOI終 the Government would play the leading role.

Dr. Franfois Weill In France. the operation cannot succeed without the initial investment of the public au血ority. In the case of Sophia Antipo悔. we made the first investme肘. When there is a deficit, the citizens pay for the defici t. If profit comes, the money may be reinvested again. So. there will be a new extension of Antipolis next year because of its su∞的s. We sell the lan往車t higher and higher price丸 but stiU lower than the market price. Th e difference between the initial price and the selling price can be reinvested on the ex給泊位。n. 1 don't agree with Dr. Dalton's view about partnership. It is a way to enrich the project and to succeed. Negotiations and barg在ining can enrich the whole operation. In 1989 , we faced complaints from American , English, Japanese. German, ltalian and 1、研ch firms. But 6 months later, in another committee. they wanted to be our partners , willing to work on commission and requested the Laboratory Director to discuss with them. Then we started a completely new way of doing things. Now. 峭的 organizing a r!磁1 partnership which is fruitful for everybody.

89


Mr. Wilfred Wong ln Hong Kong , there is no intention of the Government to 誦“ the responsibility for promoting this very important tool in our technological 鑫dvancement. We do have to strike a balance between a continuous subvention from the Government and ma垣n怠 the Science Park , if established , rnarket oriented. If we 佐y to make the Science Park self-sufficientright from the beginning , a lot of things that the Park will do will be very short-sighted because they have to make sure that the cash flow ís 鑫lríght. But if we don't, then there is the risk that the Government would have to keep putting in money. Probably , the Government would require the Park to be self-financing in the long run but not immediately.τhe Government does have some experiences in this type of projects e.g. the MTR , the Industrial Estates Corporation. What we would do is to look at the co的ultant's r,即ommend絡。給 s. If there is the need for a certain size of land to enable the Park to be functional , the Government wíll rnake such land available. And then the Government would probably provide the Park management with an endowment for several years. A separate company or co中oration would be set up to fully discharge its authority.τhis is the limit of the Governmen t' s commitment. The advantage of this method is that it avoids political interference. Secondly , the Board of Management and Executives of the Science Park will have a target to work for. They know there is a limit for the money they can get. 1 believe the model that we are now thinking at this stage i草 more like the Singapore model. The Science Park would not belong to any Universi句. but belongs to Hong Kong. We hope that for a small place like Hong Kong , we would be able to make the best use of the scient泌的 available in the territory.

Dr. Raymond S. c. Wong

“函聶區聶聶函iii90

1 have a question for Mr. Wilfred Wong. You mentioned in the morning the Golden Tri轟ngle in Kowloon Tong. namely the City Polytechnic , the Hong Kong Productivity Council and the In dus肘alτechnology Center. Since 錯ch a strong 挂lliance ìs being


務務務務務務修傷多多

built , how does the Government see the role of other institutions. in terms of technology transfer? And is the Govemment thinking of evolvi可 a Science Park from the Industrial Technology Center? 宇晨、這是rζ學

Mr.

Wi沙edWong

When 1 mentioned the clo甜 cooperation between the City Polytechnìc , the Productivity Council and the lndustri 轟l Technology Center. 1 did not reaIIy mean that this “golden 說angle" belon那 to 訟y institution. Basically , the Hong Kong Pr,吋uctivity Council serves everybody and all institutions , and the lndus肘 al Technology Center do not belo睹的 any institution. Of course , the Cìty Polytechnic would have the convenience and advantage bec紹給 ofits proximity and the sharing of some faciliti的‘ However, there is nothing to stop other institutions from using the Indus釘ial Technology Center when it is completed. 1do hope that the “ golden triangle" is just the beginning. Hong Kon怠 is too small to compartmentalise any institution and they are all within about halfan欄 hour to 45 minutes of driving distance. We are invery close proximity. 1 hope the Science Park could be an addition to this list of community facilities available to Hong Kong and all institution would participate in making them work.

Prof. Fan Yiu*kwan I think we should be talking about the “golden polygon" instead of "golden triangle" since there are otherinstitutions in Kowloon Tong.

Prof. lohn Hearn Science Parks p在rticularlý in the United Kingdom. are not tenibly successful in developing the link between industry and universitìes. 1 wonder, therefore. why most of the speakers today have not emph挂sized the importance of that lìnk.

91


Dr. François Weill 扭扭扭品,

there is a trad惱。nal beHef that it is difficult to 泌lk about business and money to academics. Furthermore , there is some kind of "contempt" towards each other. But 1 am opt加游位c about the future situ轟tion. At Sophia Antipolis in the last 3 year丸 there has been 轟 change of attitude of the frnns towards university , research laboratories and vice versa. We see some other good ex紹lples elsewhere in the world. But setting up a Science Park is a long term policy 削d its obj似的 is not the 叫做 as that in indu蛇y. It requires patience to pull people together 閥der the same 0均ective and it is n位鏘的的 find or build the interface between these two 蚓nds ofp切'ple.

Proj. John

HI側rn

Some successful Science Parks are not linked to any university at a11 and are in the research arms of large companies. This is an alterna紋ve model that c訟 be considered. My question is how important is the university-industry link in the development of a Science Park ?

Dr. Mark Money

“函益區孟晶 92

Certainly , the main theme of the Science Parks in the United States is to use the University's resources as the basis to attract companies. To my knowledge , there is not a Science Park i給你e United States 也是t was developed under the initiative of a single ωmpany with a single research development arm. Science Parks usually utilize universiti,的車s a facilitating mechanisms. The univet在ities do have the unique characteristic of having the talents and scientific expertise which can be exploit吋 for the development in industry. 1 think it will be a mistake in a communìty that has such excellent universities to have a Science Park as 總ictlyagovernment initi在.tive without the active participation of the universities.


翩翩翩務物

Dr. lan Da/ton Frorn rny 草包ndpoint, 1 would ernphasi起 the technology tr紛sfer aspec t. Without 鈍, you will not have success. Of course, it also depends on how you define '‘success" and “ Science Park'\ Anything which tends to weaken 由e possibility of successful technology transfer through the university-indus甘y link is likely to weaken the prospect for success. That doesn't rnean the Park will necess位ily lose rnoney. Maybe , it is placed in a favourable area for property developrnent. But it cannot have success in 紀rrns of helping 終chnology transfer frorn the results of research in universiti鈍, polytech說椒, or na益。nal centers of re認arch. We hope in our ca蹄, that the Park can help to generate cornpani的 which will renew the industry infrastructure for our region. This is how we judge its success . ,

The average age of the operation of Parks in United Ki ngdorn, United Statesorelsewhereis twoorthree years. Parksthathave been operated over a decade is a rninority. Two or three years is not enough to show whether it is successful or not. If you have anything that weakens the university-indus控y bonding , either because the park is too far away, or bec翻se the acadernic side or the industrial side does not want to 認lk to the other si啦, or sornetirnes because of sorne negative attitud帥, all these can reduce the chance of success.

Prof. lohn Hearn Mr. Wilfred W ong said he believes that the Hong Kong Science Park rnight be developed on the basis of that in Singapore. Ms. Chong gave a presentation this rnoming and said the initiallink of the Park with university w轟s very infonnal. So, it was not 在 case of strong university-indus位y link leading to success.

93 晶晶吋


Ms.

S,騙-ching

Chong

When [ mentioned th益t the Science Park was able to develop without the form孟llinks with the Univer公紗, it did not mean there was no link at all. In formal links we終 cr老ated by the R&D companies in the Park with the Universi紗, but on their own accord and without the effort of the Park management. We found that 血e proxirnity of the Park to the University is a factor in attracting companies to the Park because the University has the facilities that would assist the R&D companies in their work , such as laboratory facilities , research facilities , as well as the manpower that these companies need. So , the physical proximity can help in creating the interaction between the University and the companies and establish informal Iinks. It would help the tenant companies even more if formallinkages are created. That is why our Park and the National Science 蠶nd Technology Board have come together to get the 'UniveI在ity and the indus位y to in紀錄ct even more closely.

Prof. Nelson Cue 1 think ev敏ybody would agree 由at the most successful nations today in the high technology industry are Japan and South Korea. Can anyone comment on the situation with 泌的nce parks in those countries ?

Dr. Mark Money In Japan , down through the m在~or industrial 紋肘, they have deliberately tried to pool together the universities and other resou泌的 availab1e into a unit. They have what is called a "Te偵緝metropolis" , which works on a different model, not as selectively and individually as in the United States and United Ki ngdom. 1 cannot say too much about Korea because [haven't been there for some tirnes .

而iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

94


Prof. Nelson Cue The reason that 1 raised this question is 1 have an irnpression that in those coun出es , there is a strong central government role in promoting the interaction between industry and universities.

Dr. lan Dalton InKore車, they are now thinkíng seriously about buílding a Park , but no decision yet.

The Japanese generally 缸吋ve at consensus pl個 s for things they wanttodo. Furthermo時, the relationship between a graduate and the industry 個d his university is rather different from that in Europe. In Japan, an individual will still confer with his former professor or tutor o.n a personal basis , but is less likely on a corporate basis. Oneoddthi時 that 1 have observed in Japan is

that tho館做她ology

depar總lents 滋'e quite distant, not only from the Universi紗, butfrom

the Cit}人 1 justdon't understand how the connection can work well.

Mr.

Wi伊'f!dWong

1 think Japan and South Korea certainly offer very good reference points, but their philosophy and economic structures are completely different. They are much more centrally directed. When the Tsukuba Science City in Japan was set up , there was a lot of coercion by the Government to ask the big companies to move in. They were all direc紛紛 partícipa紀 in certain types of projects , and for those co部pani的 p滋滋cip認略 in the same proje仗, whoshould share whích p位t of the profit was all decided centrall}人 So, it is a completely different type of governmental action. South Korea is the same but they do píck 抖winne悶,\B站 enterprises got all the prlvileges but not the smaller ones.

95

函函函函函而


In Hong Kong, itis basically a laissez-faire policy. We believe what Hong Kong needs is the businessmen' s initiatives. So, it is difficult for us to say 由at what happened in Japan and South Korea is applicable to Hong Kong. In fact , 1 would say , based on my own knowled妒, that what happened in Japan and South Korea would not be applicable in Hong Kon多

Prof. Nelson Cue Are you saying that it is hopele俗的 have high technology in Hong Kong?

Mr.

Wii伊edWong

No. In the United States, there is less government intervention. Unless you say the United States is hopeless in high technology , but 1 don't believe that is the case. In Singapore , although the government exerts more direction, they are stiU far from the Japanese way of managing technology development.

Prof. Nelson Cue Don 't forget that the Uni給d States has a strong Government component in pushing the high technology development in the past. So , there is a hidden hand in the United States while in Japan it is open. Without government intervention, 1 can't see how it can be possible.

Mr.

區而聶益而“ 96

Wi伊edWong

That' s why 1keptemphasizing right from the beginning this morning that we should pick the areas of resear吋. We should not spend a l1 O位 money on scientific research. It' s for the UPGC to fund scien世fic 您認arch and the Government should fund contract research.


Dr. Lawrence Liu Different places or different terri給ries may do things differently to achieve the same goal. We talked about 伽 Japan and Sou街 Korea m侃taliti帥, the laissez-faire mentaIity in Hong Kong and to a certain extent, in the United States. There wiIl be something in the middle. It is necessary to get the government to take certain risks to facilitate something before other people would follow through. In the ca錄。,f the Science Park in Taiwan. the governm叩 t t∞k some calculated risks.τhe Science Park was launched in arou祕 1976 份 1977 because we knew there were so m盈nyengineers in the United States who were 俊雄inally born and educated in Taiwan. Weneed a'‘vehicle" to pull resou泌的 back toge崗位. At that time , Taiwan was a more regulated environmen t. The instrument used by the government was tax incentive. The government was willing to give those companies located in the Science Park certain tax incen柵 tives. holidays or t位 credi的. That was quite smart bec是use most econom始終 would agree that taxation is the less in敏lsive method for government to regulate something. In 轟 W哼. the compani的 got some government help throu怠h waiving the tax revenue. If they were losing money , the government would not taxthem. That was a contingency arrangement . In Taiw側. there was also a kind of political risk. The decision to launch the Science Park was made in 1976 or 1977. By the time the Park was actually set up and people invited to establish themselves in the Science Park , it was 1979 柵 when the United States d令 recognized Taiwan. It was then a very difficultdecision whether to go on or not, since under such a situati儲戶。ple would choose to leave Taiwan ins終ad of coming back. Eventual旬, the Park star給d and ittu如ed out to be quite well. 1say this because we have the 1979 issue and you have the 1997 issue物 There is always a timing issue. It was fashionable to talk about Science Park in Taiwan in the 80's but circumstances have changed in the 90' s because everyone is deregulating. To do it in the 80' s will be very different from doing it in the 90's. So timing is very 油portant.

97 逼孟晶晶晶


翩翩侈侈侈物

Furthermore , it is impossible to talk about Science Parks without some comments or views on a nation's or territory's industrial policy because in fact Science Park is a show case. Like Taiwan's Science Park , it tells you what is good about the Science Park and what is wrong with other places in Taiwan. So , you really need a lot of courage; Science Park is a very good approach though not the only one. So , why would the Hong Kong Govemment not consider a R&D tax credit? Though the c。中oration tax rate is low enough , you can still provide some kinds of incentive.

Mr. Thomas Tang

~~_98

1 just want to comment on a remark made earlier on whether it is hopeless or hopeful for high technology in Hong Kong. From an industrialist' s point of view , 1 agree with Dr. Lawrence Liu that any policy the Govemment makes with regard to the Science Park has a lot to do with the industrial policy. In the case of Hong Kong , we have to ask ourselves whether the objective of setting 叩 a Science Park is to enhance and upgrade the Hong Kong rnanufacturing indus圓的, to improve the economic performance as a whole , of. to embark ourselves on some real frontiers of science researches. The manufacturing industry has been basically engaged in low technology and labour intensive kind of operation for 20-30 ye訂s. We are now , on the one hand trying to diversify our market and on the other hand 虹yingωincrease the value-added in our products. In order to do that effectively and profitably , technology comes into place. So , the need for high technology is not the most 叮gent thing but the need for technological advancement is what the Hong Kong indus虹Y is looking for now. 1 understand how the academic people engaged in high technology researches look at the industrialists. They would say the Hong Kong industry is too low technology and do not understand front-line technology. This is true and the Hong Kong industrialists need someone to tell them. That is why 1 am surprised that the Hong Kong Government has not gone further in the implementation of the Science Park project to


務務務務務務緩變變

help our industry. What 附 need is a “ push-pull" situation between industry and academics. 1 think what would be best for Hong Kong is partnership, and an environment conducive to “push-pull'\Furthenno悶, Mainland China is very very strong in basic resear吋1. They got high technology but they don' t k:n ow how 旬, or have not yet , tum them into products .

Dr. B iU Rhinfeld According to our 斜斜的nce in exarnining models all over the wor泣, one of the key func韌的 of a Science Park or any policy regarding the development of 的ence and technology is to introduce marketωdriven and dernand-driven R&D into the research institutes. Since academics and r的earchers are not necess矗rily good businessmen and vice versa , one of the key objectives of investing in a Science Park is to channel the research and development capability of every institute into works that are commercially viable and needed by the marke t. So , to facilitate this kind of marketωdriven R&D and commercialising perspective in science and technology 必ouldbethem位nobjecti嗨, rather thanω 位gureout what kind of infrastructure 脂 put ín. The infrastructure will only be gooð if it can help 給 facilitate this objective.

Dλ Lawrence

Liu

T echnology is a very relational thing. You have to talk to engineer草, ask them why they draw the circuit this way , not that way. You need that kind of environment in order to achieve the result you wan t. In a Science Park , the atrnosphere is the mostconducive. If you do basic research , publish papers 組d just get recognized by some journals. it is not that helpfuL You need some kinds of environment in which you can work with people. There was also some discussíon about línkage wíth research or universities. 1 see several reasons for them. Firstly , 給chnology is a relational thing,矗s said. Second旬, when you

i削弱翎tions

99 「


鱗傷侈物侈務修

are c1 0ser to the re認arcb的 in universities , you are c10ser to the market for human capital.You can get the best graduate out of a university and put them into the proper jobs. Al船, youmay be able to get some people who are bored with research work and move them into business. This is a natural process and this kind of flow is needed. These people will sometimes go back to teach 個d keep 血is kindof “dial。那le" in continuity. So, don't lose sight of the relational 的pect of the technology transfer .

Mr. Y.S. Wang

~100

In China , there are 紛chnology markets. In Beijin盔, the central Government encourage people to form Technology Committees. In other provinces, there are also technology markets. You can get information from centers and they will also tell you which university or institute have what technology. Companies can go there to sign contracts . 1 do agreed that govemment policy is an important factor. In China , 也e "open door policy" really speeds up the economic developmen t. Now in Beijing or in Shenzh惚, people can buy anything. It is all because of the policy and the reformation of the system. Secondly , fina泌的時認 also importan t. Six ye都在怠。 in Shenzhen , agrìcultural banks we終 only for the agriculture projects and strucωral banks were only for structural prc首都恕. But now, any bank can support any projec t. In Shenzh憫, the Goverr盟lent now gives \'50 million every year to support Science R&D. In future, even more will be given. The third thing is manpower; Shenzhen is only 10 years old. Now , there are a lotofPh.D. holders tocome to find jobs in Shenzhen because of the new development. If the Science Park in Hong Kong 能ed some technology manpower , they will be avail在ble in some centers in Shenzhen .


Hong Kong can also consider some military industries. Everybody knows that we are good at nuclear technology, space technology and weapon technology. Anyway , Hong Kong should take advantage of its prox加拉ty to Shenzhen .

Dr.

NgCh的g-fai

1 would like to ask a question about raising capital. Is. there any statistic to show 也at venture capitalists would prefer to finance projects that are 位給 ated in the Park or outside the Park ?

Dr.MarkMon可

1 think the more vi認lfactor單位'e who have the idea and what the idea 怨, butnotwhere. Ventu紛 C喜pitalistswill not be attrac紀d to a Science Park or Research Park to a large amountjust because they are 也ere. This is not the base for decision of the venture capitalists.

Dr. Bill Rhinfeld 1 do think that in m剝ly cases Science Parks and incubator facilities are very desirable for venture capítalists, because they will want to $揖 a new bu位的鈴 developed from the beginning and then , as it grows , figure out at what time they are ready to sell the busine給.A venture capital to be succe草草ful really 油ould start with a small and newly formed idea and sεe it grow. A Science Park wi由 incubator facilities is ideal for 址, particularly in the hightechnology area. So, if properly planned , it will facilitate venture capitalactivities.

Dr. Mark Money I' d still say that you better not count on the location of the Science Park to be the principal attraction for venture capitalists.

101


There seems to be some discomfort here that in the absence of a large defense budget, people are nervous to start a Science Park. But in the two Parks that 1 was affiliated with , the University of Utah and Texas A&M , there was no defense contract or companies within either Park. If you 1∞k at other exam抖的, such as the Research Trianεle Park and Stanford , again it was 觀的tly scientificl technical elements in the ind愉悅越紅ea that caused them to grow and prosper. 1 do not believe that defense related research was the source of the large amount of capital which got into the Research Par恥,

Prof. Joshua Wong 1 got two m臨時悉的 from listeni峙的 the speakers this moming. One message is that the main reason for setting up a Science Park is economic , to provide jobs and to have more valu令 added products , etc. Another 闊的sage 1 got is a waming th在t we must be patient, and the develop紋lent is likely to be slow and we need to have a “deep pocket". Pu tting the two together does not seem to argue very well for a Science Park. 1 would like to ask the speake悶, firstly , what are the mai紛紛轟sons for slow s給rt or slow success ? And I∞king bà.ck to your experien凹, what are the things which can be done to speed up and to get visible results sooner ?

Ms.

」IOZ

S.泌k-ching

Chong

ln Singapore's case , the R&D policy is not to create employment. The Singapore Science Park has only employed 3α治 people over a period of 10 years. The prime 0吋ec位ve is 紛 upgrade the country' s industrial status rather than economic status. The Park is to develop the design capability of its indus肘es and with a long term view to makingthe 扭曲線ies of Singapore more globally competitive. That was why the Govemment took the 1斜d to develop the Science Park and to build the infrastructure. It was prepared to set aside a few hundred million dollars and have no retum withìn 10-20 years.


Prof. Fan Yiu-kwan The creation of employment should be interpreted in a wider s側se. The employment is not necessarily within the Park, but can be in other indus甜的.

Dr. lan Dalton 1 would say that different Science Parks have different objectives because they reflect the circurnstances at their places. One of the problems of the 忌。vemment people, especially those elected represent關V喲,給 thattheir 也nefr釘ne is very short. That is why most people stress that a Science Park is a long-term project. It is not like building a highw旬, and Science Parks can never solve unemployment problems although what they will do is to change perceptions of what 削 area is capable of and in the long term, they will generate employment as a spin-off. Our Park is not in partnership with others. We do not specifically have any objective of solving unemployment in our region. But we have got a thousand research jobs in the Park. For most ofthedevelopments that 1know of, in either a development agency , or a city or a regional government , a Park has been used by the indus割的 as the catalyst for change.

Dr. François Weill

y ou should appreciate a Science Park not in terrns of quantity , but in terrns of quality which is 扭lportant.

1的→


Mκ Robert

Wu

Mr. Tan惡 asked a q泌的tion earlier conceming the sources of technology for industrial泊的. 1 think Hong Kong has been traditionally using technology from overseas. But today , 1 think we have 3 additional sources of technology that are tangible for our ind啦啦啦 One is directly from our tertiary institutions. They all have got their own offices that can 控Y to commercialise research resuIts. Th is would directly help the industries in Hong Kong. In addition , the tertiary institutions have taken a new step. They have formed a jointly owned company called V轟Isity Resources Corporation. That would act as a focal point for coordinating activities of all the tertiary institutions in Hong Kong. Th怨怨 innovative. 1 don't think other pl齡的 have 甘ied 斑怨, The second source is China which has a t紀mendous amount of basic research. To commercialise 能chnology rese轟Ich results from a univ己的ity in the United States, yω)'11 encounter a lot of difficulties. 泌的 to commercialise or intemationalise technology research results from Chir主化 you have sever轟1 other problem草, 給ch as the struc惚惚, the capita1izati仰, thefin組C帥, the regulatio肘, etc. ButstiU 1 think that's a good source of technology. Hong Kong has been ac的港的 the middle-man between China and the rest of the world for at least 40 years. The tertiary institutions in Hong Kong can also pl轟.y the role of 給chnology middle倫man for the research results in China . The third area is 訟。 overseas C泌的se technology b齡的 which have been underestin泌的d. Nobody has mentioned this too much. Theover甜的 Chinese community is a very large pool of technology resources. There was an article in last week's New York Tirnes , $揖.ying that of all the new companies form組 in the Si1icon Valley , 刻most 50% have Chinese entrepreneurs. That is a rich source of people who have skills and determination. 1 think Hong Kong is a very 也sirable area to live in. If good condi泣。nsc組 be provided , these people can be attrac終d to come back to Hong Kong to develop their ideas. The Science Park in Hong Kong can play this role.

104


Prof. Joshua Wong This moming D r. Weill mentioned the hazard of targetting multinational companies to come to a Science Park. Anchor tenants may move subsidiaries for arbitrary reasons. What is the strategy in this regard ? It would also be interi峙的ng to hear from other p轟nel members what their policies of attracting anchor tenants are.

Dr. François Weill In fact, we still 的 to attract big firms. Big co中ora泣。泣s can settle quick:l y in a Science Park, and so we have 紛 balance this positive side against their mobility. Very often there can be a balance between smaU frrms and fore站紋 frrms. We have relatively few bi第 European frrms , but more Arnerican firms. D仇 Ian

Dalton

We 紋y to make sure that the results of our rese訂'ch can form of the renewable industrlal infras紅uc級re in our region .

p紅t

Each 磁ne

1 open up a new section of the Park, it' s very helpful to have one or two owner occupiers 給king up the space although 1 don't have to face both the financing of infrastructure and the financing of building at the same time. These occupiers tend to be intemational companies. We don't deliberately seek for their investment but they are likely to be the international kind.

Dr. Lawrence Liu The most irnportant factor in 叮ing to keep multi-nationals is to make surethat they can continue to have a profitable operation. AIso,的 a follow心p point , you really have to understand how the big corporations operate and how 也ey think,的pecially their strategy for survival and improvemen t. You should try to anticipate their strategies in order to provide the foundation for them to stay with you or to diversify with them .

105

iiii函益區孟晶


2月←一叫一一i

Dr. York Liao 1 believe the most pop叫ar que緝的 which will be raise(l to 也e indus制ali鞠組d businessmen during the feasibility study will be: “ If there is a Science Park today, will you go in?" Then, two que惱。ns will come back f知m them (the industrialist星). Firsl, "How much is it golng to COSl 1臨?" Second ,“What is the expec能drateof retum?" 1 街nreally concemed aboutthe secondqu閥tion. Toanswer that, we have lO know the fail ure.s. We have h鋪rd many good e主amples and got arosy picture ofthe Science Park. T剎車.y, wehave people who have got 10必 of experience direcdy or indirecdy in Science Parks. Could some figures be ob切ined about failure rates of companieslnScienceParks? Forexample , in thecase ofTaiwan , Dr. Liu mentioned thal 135 comp.ω泣的 were in there. 1 wonder how m敘ly are not in there now. 齡fr. Tbomas Tang also gave s翎ne interes組ng figures by 路ying that if you go in a Scie恥eP當k, the chance to be successful is 8 out of 時. If youdon't, thechanceisone out of 10. Supposing that is the case. why doesn't the government give s即port? 1 really want 如 hear 斂。m the panelists any of such figures if they are available.

Dr. Lawrence Uu 1 don't have specific figures. Some companies in some Sçience Parks are not doing very well, onIy because 惱。irp;滋eot companie畢 are not doing well in the Uni終d States.

High technology ìs a very risky business. Quite oftJ間, people use as a way lO de句n the archi脫ture 給 block 0必er. people. You have lO be v佼ycOmpe位tive. You n摺d lO workoUl the strategies in advar間紐d 泊 make 關e that it is a winning strategy. If you 10漪, 00以治y will buy your products 翻ym穆巴婦y intuitive feeIinεis that, at the most, 5% of the c個lpanies in Science Parks which would have problems. But 也is is only intuitive , and not empirical.

紛chnology

106


Dr. lan Dalton In the United Ki ngdom, the Science Parks Association publishes statistical information at the end of each calendar year. If you like , 1 could send a copy to you. 1 don't have the results for the end of 199 1. But the results by the end of 1990 showed that over the period of seven years , the average failure rate of companies in Science Parks in the United Kingdom w的 2.9%. You have to compare that with the “open market" national failure rate of the sa血e ca紛gory of companies , which was 10.7%. So statistical旬, you 位官 3 or 4 times saferin 血e Park. But those 學even years were in the 80' s when the economy enjoyed a good time. 1suspect now the situation has changed; and although the proposals ( received for setting up companies )血ay relatively be the 純E棍, the failure rate of companies in the United Ki ngdom has risen dramatically 知 thep揖st 18 montl豆豆 because of the recession. 1 agree with Lawrence that it is nQt always the local divisions thatfail or withdraw. Some油器s , it is the head office that is going through a very bad 也ne and decides to withdraw. We had two of these ca給 s that happened to us.

Dr. Mark Money If you' re pleading for an answer to the question “C削 we succeed 1", 1 can answer “ Yes" if your economy remains stable , if you get an organization with definite objectives , and if you have a positively motivated management team led by one “passionate adv∞ate" in a high place in a community that will support and give guidance , then you will succeed. Las旬, you also need to have luck.

Pro丕 Benj.棚in

Tsou

知肢。ng

Kong , we now have 孟bout 3 ,700 academics working in Compared with 12 years ago, ît is more th紹 double. In the next 4 y路路密切, it is supposed to go 叩 byanother three thousand. We have a lot of manpower. But one fundarnental V紋切的 institutio酌.

107


problem here is that academics who derive income on the basis of using their eχpertise on consultancy work are subj紹給 very heavy constraints at the moment impo給d by their institutions. 1 wonder whether similar constr位 n的 apply elsewhere and how theycanbeliberalised.IknowinNorthAmerica, forexample , atime constraint applies but not in terms of do l1 ar amount .

Dr. lan Dalton Wedon'thaveanyconstraintin 鈴rms of the actual amount of money that may be earned. Although an individual is su姆ect to nonnal taxation from his 儲rnings , the university applies certain guidelines. The most crucial is that 甜Y staff member engaging in collaboration with a company must be doing work of a non-routine nature which is likely to advance his knowledge or his capability of the su峙ect. Furthennore , none of those activities will in any way interfere with his teaching or research. The head of department is responsible for ensuring that. In the case of the head of a depar師lent, the Ptincipal of the university is responsible for ensuring that he will not prejudice the work of his depar經lent by his extemal activities. This is the basic arrangement.

Dr. Mark Money 1 think in all places , there are difficulties with academic salaries keeping pace. It is not unique in Hong Kong. Some people think th滋 a1l the faculty should particip是te in the projects of the Science Park. In my ins臨的。曰, we had a very small portion of the faculty who actually participated in and gave their 叫凹的, enthusiasm and expertise to tl呻吟ects in the Resea的 Park. 1always say that if you only have 2 or 3% of the faculty who 滋海 really motiva鉛d and in鉛rested in doing that , it is already a factor for success. Whether you can have a broad range of faculty participation is not important.

一一一……… 108


Ms. Siak-ching Chong In Singapore , the academics are encouraged to undertake consultancy or research work outside the university. A ce此ain percentage of the remuneration will go to the university. But there is no limit on the amount which may be earned.

Dr. La wrence Liu Last August, the Dean of School of Management of MIT c缸凹 的 Taiwan , he told me atlunch that professors in Hong Kong are highest paid on the average. He was in Taipei to close a fund that he rais吋. It was a 6-million US dollars endowment for industrial uses. Also , a bunch of Taiwan companies , mostly our clients , have forrned a consortium to buy a piece of land in Ireland to build an industrial park. It is also open up to Hong Kong companies and Korean companies. These incidents show that there is a big market for good consultancy work. People in indus甘y are willing to buy this kind of services because they 訂e scared that they wi11 10se their market if they cannot upgrade their technology. Industries in Hong Kong will be the same. The only issue is how good you are as a consultant and how to get out from your institutions and “ hustle" business. This could be done as long as you have a rather liberal consultancy policy in the institution that you work in.

ProJ. John Hearn In some otherconferences , I' ve heard people point out that science professors could getjobs in industries. Of course we don'twant to encourage that. If all the scientists and engineers go to work in industries and leave their universities , we are “ eating our seeds". So we need to watch out for that.

109

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Dr. S.K. Tso We have heard aboutconstraints in terms of time and money. 1 think there are also cons肢窩ints 紛紛誼通 of size , and the proximity of the land. Some Science Parks , quite ap創 from the intellectual and polítical environment, place a lot of emphasis on the physical environment. The physical environment ce磁inly plays a part. Some 戶均ple would really like to see the Science Park a “ park-like" environment or at le都tl∞k like a university campus. But space in HonεKong is at a premium and it' s very difficult to get a 抖的 of land to develop such a “Park 蹄。浴血ity

is also 誼亭。做nt. Although we 泌ve heard that a lot of university people could be engaged in high 紀chnology activities. this is still arelatively small size. Notmany will actually be attracted to 泌ke part in 泌的e activities unless there are prox出ity or some 嗡的ncen卸的. Although we may not be able to have a Park 曲“ is close to all institutio肘, we may have one with several premises each of which is n認rto some ins位心ti。那 where speci泌 expertise exists or may be a胎chedto 是啊。rresearch institu紛紛 the start and allowed to grow. 1 would like to raise this as 在 question for people who are interested in 給世ng up a Science Park to think about .

Prof. Fan Yiu-kwan InHon怠 Kong , we have very different definitions for park , garden and beach. Anybody wants to respond to the com經le齡?

Prof. John Hearn The message 1 got is that in order to be successful , we frrstly n臨d space. There is not much of that in Hong Kong. We need plenty of money , but most Government money has been committed to the PADS projec t. We need plenty of time , but 1997 is coming fast. It seems we don't have much chance of getting a good Science Park. More seriously , something which has not b帥n r紋路d today is: -函漏晶晶 110


務務修務修務務揚揚

Should we not reflect the needs of the s紋vice indu蛇ies in Hong Kong which after all now con說bute to something like 話。% ofour GDP?

M,.

Wi伊'BdWong Y嗨,

we are short of land , but land 錯鈴 always be made in Hong We are short of money. but there are lots of ways of m轟king money. The most 磁帶ortant thing is whether Govemment feels that building a Science Park can help the long租rmeconomic development in Hong Kong. 1have heard reasons for establishing a Science Park. But the Hong Kong Govemment has a veηclear o吋ective th訓, whatever Science Park or Indus出al Technology Center orTechnological Support 0啥叫zation thatwecreate ,itis for serving the econ紹過ci的res紋。,f Hong Kong. Unfortuna1給ly , some peoplem講y notagr給 with this. But in Hong Kong,車 place with s。 益mi紛dspace 滋ldresourc筒, wehavetomal磁 a very clear statemen t. So , when arriving at the decision of whether to create a Science Park or Science Parks , as suggested by Dr. Tso. we have to 悅ke into account whether we can afford it. and whether in the long-term, it is going to benefit Hong Kong. If it 訟, then of course , we have to create “ creative fmancing" , a term thatI have heard earlier today. There are all sorts of ways 蛤 fin組cece加in proj駝的. Ko峙's 絲路.

Prof. Fan

yi詔-kwan

Let me declare this session closed and 1 shall turn the meeting over to Prof. K. Young.

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物競侈緩緩緩級聯

CLOSING REMARKS K. Young

Society 01 Hong Kong Scholars Hong Kong

Ladies and

Gentleme瓢,

It has been a rather long day but a very interesting , infonnati珊, and constructive one. 1 certaìnly learnt a lot and 1 hope you dìd t∞. The Socìety of Hong Kong Scholars consists of academics with an unintended and perhaps slightly unfortuna給 preponderance of scìent悠悠 and engineers. With such a composition and faced with a 似的tion such as a Scìence Park in Hong Kong , it's 揖llt∞ easy tocome 叩 with a “隘的-jerk" “真ction and say: “ Yes. of course we want a Science Park in Hong Kong" ;“ Y郎. of course it ought to be built" ;“Y帥, it must be in my specialised area whatever that is" ;“Y間, it ought to be right next to my university whichever that is" and “Y缸. of course ìt ought to be paid by public money'\ glad to say tI鴻 today 1 did not see too many “jerking-knees'\We are not making a "Iobbying effort". We are here to listen to the evidence , 的 sharpen the discussion , and ìn this way to contribute to the comn泌的ty in whatever way wecan. Thatis after all whatthe Society is meantto be. From today' s discussion 1 think we have all come to the conclusion that 1 訟n

函函函函函品 112


and indeed before the whole community is n01 a simple “ yes" Wha1 sOft of Science P綜kdowew訟1? How do we go 諦。u1 it? Who pays for i1? Ce技ainly, 1 紋n n01 here to Sl主mmarize all these questions. It is rig糙, 1 think , for the Govemment, to go ahead with a formal consultancy study. All these issues should be put together for a final decision. If this is a sign that we finally move from “ talk"to “ action" even though somewhat belated旬, 1 think it should be welcome. 1 said “belatedly"becauseas Dr. Ngtold us thismomi嗯, it was 6 years a,怠。 that the Society organi品d a symposium on the role of high technology in the development of Hong Kong ‘ before 肘, or “絞。,".

Now we often ask what will happen after 1997. My favonrlte answer is that what will happen after 1997 is 199話 .Ofcour銬, it rneans life wi11 go on. But 1998 is ex在ct1y 6 years from now. If the Society of Hong Kon忍 Scholars is to organize another symposium in 1998 , 1 am sure we don' t want to have a similar one on Science Parks. 1hope by then we would be celebrating the opening of the Hong Kong Scíence Park , if n01 its 1st anniversary. Perhaps , Mr. Wong should leave a memo to his successor invitin惡 all of us to the opening on that precious occ轟sion. Wecanall 給y thatwewe紀念11 級ere in the beginning. r這evertheless, this is an op位怨怨tic vision on which 紛 bring this Symposium now 10 轟 clo話. Also , 1 th紋ÙC once again the Hong Kong Foundation for its generous support, to Chen Hsong Machinery for its flowers and appreciation , to all thl'< speakers for sharing with us your wisdom and experien間, and particularly 10 those who came from afar s戶::cially for this meeting , to all the particípants for joining us here today in Sp加 of your very busy schedule , not to mention the live broadcas1 of the Superbowl this m如lÍng. May 1 wish you all a good evenin怠 and perhaps we could see you all a1 the opening of the Hong Kong Science Park sometime in the n01 t∞ distant future.

113 屆函函函晶


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Investment for the future Science park